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Weather, inventory challenges and deep discounts were factors retailers had to grapple with as they competed with each other and their own bottom line.
Washington--The National Retail Federation wasn’t far off when it estimated in October that holiday sales for the 2015 season would increase 4 percent--the organization revealed Friday that retail sales climbed 3 percent year-over-year, to a total of $626.14 billion.
The NRF said December retail sales (excluding automobiles, gas stations and restaurants) fell 0.2 percent seasonally adjusted from November, yet increased 3 percent un-adjusted when compared with the same period in 2014.
“Make no mistake about it, this was a tough holiday season for the industry,” NRF President and CEO Matthew Shay said. “Weather, inventory challenges, advances in consumer technology and the deep discounts that started earlier in the season and that have carried into January presented stiff headwinds as retailers competed with one another and their own bottom line.”
He added that while some will attempt to diminish this positive outcome, the 3 percent increase actually is “solid growth,” and shows that retailers can respond successfully to a changing and challenging sales environment.
The NRF reported in October that it expected retail sales in November and December to reach $630.5 billion, but it noted that Americans would be torn between their desire and their ability to spend, having the economy on their minds.
“A double whammy of deflation and December weather constricted holiday sales growth as well as consumer spending,” NRF Chief Economist Jack Kleinhenz said. “The results of December’s retail sales remind us just how significant of an impact unusual weather can have on retail and overall economic activity.”
Statistics on retail sales from the U.S. Commerce Department showed results that were similar, though not exactly the same. Figures released by the department also showed a 0.2 percent seasonally adjusted decrease in December, but an increase of only 2.2 percent un-adjusted year-over-year.
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