U.S. Retail Sales Up in October

(IDEX Online) - The National Retail Federation has reported that despite a slowdown in the U.S. economy, consumers are still spending and the important holiday season looks on track to perform better than last year. Retail sales in October increased 0.2 percent seasonally adjusted over September and were up 4.2 percent unadjusted year-over-year. 

"Despite the gradual slowdown in the U.S. economy, consumers are in a good place and October's retail sales are a step forward into the all-important holiday season," said NRF chief economist Jack Kleinhenz said. "Uncertainty around trade policy has impacted consumer sentiment recently but ongoing job growth, low interest rates, low inflation and the stock market hitting record highs provide support for consumer spending."

He said the year-over-year growth was impressive because it compares with October 2018 sales that were up 5.8 percent over the same month in 2017.

The NRF also said that 165.3 million people are likely to shop Thanksgiving Day through Cyber Monday, according to the annual survey released in association with Prosper Insights & Analytics.

"The tradition of Thanksgiving weekend holiday shopping has become a five-day event with consumers spending money in stores, supporting local small businesses, and online with their mobile devices and computers," NRF president and CEO Matthew Shay said. "Even as people are starting to purchase gifts earlier in the season, consumers still enjoy finding good Thanksgiving deals and passing time shopping with family and friends over the long holiday weekend."

Throughout the course of the holiday weekend, 39.6 million consumers are considering shopping on Thanksgiving Day, 114.6 million on Black Friday, 66.6 million on Small Business Saturday and 33.3 million on Sunday. The shopping weekend will wrap up on Cyber Monday, when 68.7 million are expected to take advantage of online bargains.

Shay said younger consumers are more likely to shop over the Thanksgiving weekend. Among those ages 18-24, 88 percent say they are likely to shop and particularly enjoy the social aspect. Similarly, 84 percent of those ages 25-34 plan to shop. That compares with 69 percent of holiday shoppers overall.

Of those planning to shop, there is an almost even split of people who plan to start their shopping in-store (47 percent) compared with those who plan to start online (41 percent). Those under 25 are even more likely to say they expect to start shopping in-store (52 percent).

"We expect the biggest increase in potential shoppers for Thanksgiving Day this year," Prosper Insights Executive Vice President of Strategy Phil Rist said. "We anticipate that people may head to stores if they are open or shop from their phones while watching football."

For consumers who do not plan to shop, more than half (53 percent) say something could convince them. The top reasons given that would change their minds are a sale or discount on an item they want (26 percent), if a family member or friend invites them to shop (12 percent), if they could be sure the items they want are available (11 percent) or a free shipping offer (11 percent).