December and holiday season retail sales see gains, reports Commerce and NRF

December retail sales numbers finished 2023 on the right side of growth, according to data respectively issued today by the U.S. Department of Commerce’s Census Bureau and the National Retail Federation (NRF).

Commerce reported that December retail sales, at $709.9 billion, were up 0.6% compared to November and rose 5.6% compared to December 2023. Total retail sales, from October through December increased 3.9% compared to the same period a year ago. And total 2023 retail sales posted a 3.2% annual increase over 2022.

December retail trade sales saw a 0.6% gain over November and were up 4.8% annually, and non-store retailers, which includes e-commerce, increased 9.7% annually.  

The U.S. Census Bureau’s tally for core 2023 holiday season retail sales increased 3.8% annually, coming in at $964.4 billion, in line with what NRF had forecasted despite inflation and high interest rates. NRF said this marks a new record, topping 2022’s $929.5 billion, the previous record.

NRF had forecast that 2023 holiday sales would increase between 3% and 4% over 2022 to between $957.3 billion and $966.6 billion. It explained that despite a slower growth rate compared with the past three years, when trillions of dollars of stimulus led to unprecedented rates of retail spending during the pandemic, 2023’s holiday spending was consistent with the average annual holiday increase of 3.6% from 2010 to 2019.

For the holiday sales season—which NRF defines as sales occurring between November 1 and December 31, excluding automobile dealers, gasoline stations, and restaurants, to focus on core retail, and including online and other non-store categories (and not adjusted for inflation)—NRF said total sales, for online and other non-store sales, rose 8.2% annually, to $276.8 billion. This was in line with its forecast of 7%-to-9% annual growth, to between $273.7 billion and $278.8 billion.

NRF reported that December retail sales, which does not include automobile dealers, gasoline stations, and restaurants, increased 3.3% annually on an unadjusted basis and were up 0.7% on a seasonally adjusted basis compared to November. For all of 2023, NRF reported that total retail sales, at $5.13 trillion, matched its expectation of annual growth at, or slightly below, 4% annually. Which it said points to a slowdown in the retail sales growth rate throughout 2023.

“Consumer spending was remarkably resilient throughout 2023 and finished the year with a solid pace for the holiday season,” NRF Chief Economist Jack Kleinhenz said in a statement. “Although inflation has been the biggest concern for households, the price of goods eased notably and was helped by a healthy labor market, underscoring a successful holiday season for retailers.”

November-December holiday sales saw year-over-year gains in all but two of nine retail categories, according to NRF, paced by electronics and appliance stores, health and personal care stores and online sales. Specifics from key sectors for the two months combined, all on an unadjusted year-over-year basis, including:

• Electronics and appliance stores were up 9.3%;
• Health and personal care stores were up 9%;
• Online and other non-store sales were up 8.2%;
• Clothing and clothing accessory stores were up 3%;
• General merchandise stores were up 2%;
• Grocery and beverage stores were up 1.1%;
• Sporting goods stores were up 0.3%;
• Building materials and garden supply stores were down 3.9%; and
• Furniture and home furnishings stores were down 6.2%