Core retail sales during the 2024 holiday season grew an unexpectedly high 4% over 2023 to a record $994.1 billion, according to data recently released by the U.S. Census Bureau.
“Consumers came out to spend this holiday season and clearly underscored the solid growth in the US economy,” Jack Kleinhenz, chief economist for the National Retail Federation, said on Jan. 16 after the report was released.
“The spending pace was back to pre-pandemic growth and indicates a good start for the year ahead,” Kleinhenz said. “While the shorter holiday shopping calendar likely influenced the continued trend of more online shopping, there was also a return to in-person shopping experiences and a focus on early buying.”
Kleinhenz said the 2024 figures were driven in part by lower inflation compared with 2023, particularly for goods.
The 2024 holiday sales results top the previous record of $955.6 billion spent during the 2023 holiday season. NRF had forecast that 2024 holiday sales would increase between 2.5% and 3.5% to between $979.5 billion and $989 billion.
The retail sales data excludes automobile dealers, gasoline stations and restaurants to focus on core retail. NRF defines the holiday season as Nov. 1 through Dec. 31.
The holiday total, which is not adjusted for inflation, includes online and other non-store sales, which were up 8.6% at $296.7 billion. NRF had forecast that the category would grow between 8% and 9% to between $295.1 billion and $297.9 billion. Online holiday sales were $273.3 billion in 2023.
The Census Bureau said overall retail sales in December were up 0.4% seasonally adjusted month over month and up 3.9% unadjusted year over year. That compared with increases of 0.8% month over month and 4.1% year over year in November.
November-December holiday sales saw year-over-year gains in seven of nine retail categories, led by online sales, furniture stores and electronics and appliances stores.
Specifics from key sectors for the two months combined, all on an unadjusted year-over-year basis, include:
- Online and other non-store sales were up 8.6%.
- Furniture and home furnishings stores were up 5.6%.
- Electronics and appliance stores were up 3.7%.
- Health and personal care stores were up 3%.
- Clothing and clothing accessory stores were up 2.8%.
- General merchandise stores were up 2.4%.
- Grocery and beverage stores were up 2.1%.
- Building materials and garden supply stores were unchanged.
- Sporting goods stores were unchanged.
Based on Bureau of Labor Statistics data, NRF estimates that retailers hired 438,000 seasonal workers during November and December, in line with the 400,000 to 500,000 NRF had expected.
