Holiday Sales Declined 2.8 Percent in 2008, Reports NRF
January 21, 2009 -- A deep recession, severe winter weather and five fewer shopping days combined to create the most challenging sales environment in years for the nation's retailers. According to the National Retail Federation (NRF), initial 2008 retail industry holiday sales (excluding automobiles, gas stations and restaurants), which combine November and December sales, declined 2.8 percent to $447.5 billion, even weaker than NRF's projected 2.2 percent holiday forecast. Holiday sales in 2007 were $460.2 billion. This represents the first decline in holiday sales since NRF started forecasting and tracking the numbers in 1995.
"The current economic crisis proved to be more challenging than any had anticipated," says NRF Chief Economist Rosalind Wells. "Consumers showed they were more than willing to wait out retailers this year causing increased pressure on prices."
December retail sales released by the U.S. Commerce Department also show a sales decline. Retail sales (including non-general merchandise categories such as autos, gasoline stations and restaurants) decreased 2.7 percent seasonally adjusted from last month and dropped 7.9 percent unadjusted year-over-year.
Still, there were very few seasonal bright spots in December. Among them were health and personal care stores, where unadjusted sales grew a solid 7.6 percent year-over-year and 0.4 percent seasonally adjusted from November. Sporting goods, hobby, book and music stores were up 0.7 percent unadjusted from a year ago and down 0.4 percent from seasonally adjusted month-to-month.
Weakness was seen by clothing and clothing accessories stores (down 9.4 percent seasonally adjusted year-over-year and 2.5 percent month-to-month seasonally unadjusted), furniture and home furnishings stores (down 11.9 percent seasonally adjusted year-over-year and 1.8 percent month-to-month seasonally unadjusted) and electronics and appliance stores (down 3.2 percent seasonally adjusted year-over-year and 1 percent month-to-month seasonally unadjusted).
"The current economic crisis proved to be more challenging than any had anticipated," says NRF Chief Economist Rosalind Wells. "Consumers showed they were more than willing to wait out retailers this year causing increased pressure on prices."
December retail sales released by the U.S. Commerce Department also show a sales decline. Retail sales (including non-general merchandise categories such as autos, gasoline stations and restaurants) decreased 2.7 percent seasonally adjusted from last month and dropped 7.9 percent unadjusted year-over-year.
Still, there were very few seasonal bright spots in December. Among them were health and personal care stores, where unadjusted sales grew a solid 7.6 percent year-over-year and 0.4 percent seasonally adjusted from November. Sporting goods, hobby, book and music stores were up 0.7 percent unadjusted from a year ago and down 0.4 percent from seasonally adjusted month-to-month.
Weakness was seen by clothing and clothing accessories stores (down 9.4 percent seasonally adjusted year-over-year and 2.5 percent month-to-month seasonally unadjusted), furniture and home furnishings stores (down 11.9 percent seasonally adjusted year-over-year and 1.8 percent month-to-month seasonally unadjusted) and electronics and appliance stores (down 3.2 percent seasonally adjusted year-over-year and 1 percent month-to-month seasonally unadjusted).