Retail sales during holiday season rise 5.5% over last year
A holiday spending resurgence led by strong online sales gave U.S. retailers a much-needed boost and helped improve the nation’s economic outlook heading into the new year.
Retail sales from Nov. 5 through Dec. 24 rose 5.5% to $584.3 billion over the same period last year, according to MasterCard Advisors’ SpendingPulse. The figures, which exclude auto sales, are ahead of industrywide projections for a 3.3% to 4% rise for the Christmas season and are the best since before the recession.
“The numbers verify what people have been talking about: a positive season and a good step forward,” said Michael McNamara, vice president for research and analysis at SpendingPulse, which estimates sales for all forms of payment. “Consumer confidence is a bit more improved as there has been stability in the system.”
Although the U.S. unemployment rate remains high, “when we see these good demand numbers come into play, I think that puts the country in a better position to start hiring more broadly,” McNamara said.
Online sales posted a 15.4% year-over-year increase, with six days during the holidays registering more than $1 billion in sales online, up from three days in 2009. As shoppers have become more comfortable buying on the Internet, retailers have become increasingly savvy about using their websites to roll out deals earlier and offer more perks such as free shipping.
