7.4% November Sales Growth Beats Expectations

Aggressive promotions last month in the U.S. paid off, bringing shoppers into stores in great numbers. According to the National Retail Federation (NRF), retail industry sales for November, which exclude automobiles, gas stations, and restaurants, rose a strong 7.4 percent unadjusted over last year and increased 0.5 percent seasonally adjusted from the previous month.

The organization says the increase is in line with its holiday sales forecast of 6 percent growth.

“Consumers shook off concerns about higher energy costs and responded well to the seasonal promotions,” said NRF Chief Economist Rosalind Wells. “If November is any indication of what consumers are capable of, retailers can expect a very happy holiday season.”

November retail sales released yesterday (Tuesday) by the U.S. Commerce Department show that total retail sales, which include non-general merchandise categories such as autos, gasoline stations and restaurants, rose 0.3 percent seasonally adjusted from November, and increased 6.3 percent unadjusted year-over-year.

Gasoline sales, which NRF does not include in its calculation of retail industry sales, rose 17 percent unadjusted from last November.

The main drivers for this holiday, apparel and electronics, experienced solid growth. Sales at clothing and clothing accessories stores rose 7.6 percent year-over year and electronics and appliance stores jumped 7.4 percent from November 2004. 

NRF expects retail industry sales to increase 5.6 percent this year over 2004. Holiday sales, which are defined as retail industry sales in the full months of November and December, are expected to rise 6 percent to $438.5 billion.