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Total retail sales in November and December increased by 4 percent to reach their highest levels since 2011, according to the National Retail Federation.
New York--Confident consumers returned to spending this holiday season, with total retail sales in November and December increasing by 4 percent to reach their highest levels since 2011, according to the National Retail Federation.
According to data released Wednesday by the NRF, total sales for the two-month period hit $616.1 billion in 2014. Non-store sales, which gives an indicator of online and e-commerce sales, increased 7 percent to $101.9 billion.
The growth was in line with the organization’s early predictions that as consumers continued to spend more on others and less on themselves during the holiday season, retail sales for the two-month period would increase 4 percent year-over-year.
“There is every reason to believe that we have moved well beyond the days of consumer pessimism and that the trajectory for retailers continues to point up,” said NRF President and CEO Matthew Shay.
But the continued shift toward an earlier start for the season, with consumers wanting to get a jump on holiday gifts and retailers’ desire to elongate the shopping season, meant that November sales are growing at the expense of December. Retail sales during December, excluding automobiles, gas stations, and restaurants, were down 1 percent seasonally, according to the NRF.
For the jewelry industry, MasterCard’s holiday sales report brought good news--the company said that women’s apparel and jewelry led the increase in retail sales in 2014, with looking to purchase an experience or a more lasting gift rather than just spending to buy.
“This holiday season was a social one,” said Sarah Quinlan, senior vice president at MasterCard Advisors. “While certain retail categories saw steady performance from prior months, the focus on creating experiences stayed at the top of many lists. From dining out to planning trips to memorable pieces of jewelry, we saw increases in those categories that will drive future stories beyond just a package exchanged with a friend or family member.”
RELATED CONTENT: Online holiday spending increases as expected
For both major retailers that sell fine jewelry and independents, holiday season results were mixed, indicating that the market remains fragmented. Shoppers are just as likely to buy a piece from J.C. Penney as they are to purchase at their local jewelry or buy online.
When asked by National Jeweler to describe the holiday season in one word, independent retailers’ responses ranged from average and unusual to pleased and cheerful.
Among the large chains, J.C. Penney reported
that same-store sales were up 4 percent in November and December, and Macy’s comps on an owned-plus-licensed basis were up 3 percent during the two months. However, both retailers also said that they would be closing stores in 2015.
Tiffany & Co. noted in its financial results that though the company’s new “T” collection has been popular, it did not translate into strong sales across the board. Same-store sales in the Americas fell 1 percent in November and December and comps around the world were flat.
At Signet Jewelers Ltd., Zale Corp. had a better-than-expected holiday season while comps at Kay Jewelers and Jared the Galleria of Jewelry fell short of the company’s expectations.
Birks Group, however, had a strong holiday, reporting Wednesday that comparable store sales during the holiday season increased by 7 percent on a consolidated basis compared to the prior-year period.
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