Retailers beat holiday sales projections

National Retail Federation reports that retail sales for December rose 5.3% unadjusted year-over-year and 0.5% seasonally adjusted from November. Preliminary 2010 holiday sales, which combine November and December, rose 5.7% to $462 billion, surpassing the association’s forecast of 3.3%. This is the best holiday sales gain since 2004 when sales increased 5.9%.
“In spite of weakness in employment and rising gas prices, consumers showed they still have spending power which helped retailers when it counted most,” said NRF President and CEO Matthew Shay.  “Retailers did a tremendous job planning for the season by managing inventory and hitting the right price points that helped them tap into pent up demand.”
December retail sales data released by U.S. Commerce Dept. show total retail sales increased 0.6% seasonally adjusted over November and 8.3% unadjusted year-over-year.
Sales growth from November varied in strength while year-over-year sales showed great strength. Though the U.S. is still dealing with a weak housing environment, building material and garden equipment stores sales showed notable gains, increasing 1.9% seasonally adjusted over last month and a strong year-over-year growth of 12%.