NRF: Holiday Sales Down 2.8 Percent

NRF: Holiday Sales Down 2.8 Percent
January 14, 2009

A deep recession and five fewer shopping days were among factors in the most challenging sales environment in years for retailers, according to the National Retail Federation (NRF). Initial 2008 holiday sales, which combine November and December sales, declined 2.8 percent to $447.5 billion, 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. December retail sales recently released by the U.S. Commerce Department show total retail sales (which include 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. Among the few bright spots 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 store sales were up 0.7 percent unadjusted from a year ago, and down 0.4 percent from seasonally adjusted month-to-month.