Holiday sales growth only 3%, down from predictions

Share this content:
Slow growth in 2008 for retail: NRF
Slow growth in 2008 for retail: NRF

Total retail sales in December, including autos, gas and restaurants, rose 3.2% year-over-year unadjusted while they dipped 0.4% seasonally adjusted from November, according to the US Commerce Department.

According to the National Retail Federation, retail industry sales for December, which exclude automobiles, gas stations and restaurants, rose only 1.7% unadjusted over last year and decreased 0.4% seasonally adjusted from November. As a result, 2007 holiday sales, which combine November and December sales, rose 3% to $469.9 billion, weaker than NRF's projected 4% holiday forecast. This represents the lowest holiday season growth since 2002, when sales rose 1.3%.

“Consumers weren't spending as robustly as anyone thought, including us,” said Scott Krugman, VP of public relations at the NRF. “The weak job market is a lagging indicator.”

Apparel, home furnishings and department stores took the biggest hits. In addition, November retail industry sales were revised downward to 4.7% growth from the initial 5.1% that was reported last month.

Despite the decline, health and personal care stores where unadjusted sales grew 3.7% year-over-year and 0.7% seasonally adjusted from November.

General merchandise stores also saw sales increase 2.1% year-over-year and 0.3% from the previous month.

“I think that retailers did a tremendous job at marketing and giving consumers what they wanted,” Krugman added. “Consumers were buying for holiday, but they may have been holding back on other spending due to the weak economy.”

NRF is forecasting that retail industry sales will increase 3.5% in 2008.

“The retail industry is resilient and we expect it to bounce back even in these hard times,” Krugman added.


Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above