Holiday Retail Sales Below Expectations

(IDEX Online News) – December retail sales (excluding automobiles, gas stations and restaurants) increased 0.8 percent seasonally adjusted from November and  increased 2.1 percent unadjusted year-over-year, reported the National Retail Federation (NRF).

The NRF said while solid consumer spending in December helped retailers finish the year with a healthy holiday shopping season, economic uncertainties meant that consumers were cautious in their spending.

Total holiday retail sales increased 3 percent, below NRF’s projected forecast of 4.1 percent to $579.8 billion. Additionally, non-store holiday sales grew 11.1 percent, below Shop.org’s October forecast of 12 percent growth in online sales in November and December.

“For over six months, we’ve been saying that the fiscal cliff and economic uncertainty could impact holiday sales,” said NRF president and CEO Matthew Shay. “As the number shows, these issues had a visible impact on consumer spending this holiday season.

Shay also said that the burden of growing the economy should not fall on consumers. “Washington must put political differences aside and do what it takes to get our country growing again and Americans back to work,” he argued.

NRF chief economist, Jack Kleinhenz, cautioned that heading into 2013, consumers could continue to think twice about making discretionary purchases as they face decreases in their paychecks and other household budgetary concerns.