The National Retail Federation (NRF) has reported that core retail sales during the 2024 holiday season grew 4% compared to the previous year, surpassing expectations and reaching a record high of $994.1 billion. This growth was notably higher than NRF’s forecast, which projected a modest increase between 2.5% and 3.5%. For the entire year, retail sales climbed 3.6%, totaling $5.28 trillion, setting a new all-time record.
According to NRF Chief Economist Jack Kleinhenz, the increase in consumer spending reflects a robust U.S. economy, with spending patterns returning to pre-pandemic levels. “Consumers came out to spend this holiday season, highlighting continued economic strength,” Kleinhenz said. “The season also showed a balance between online shopping and in-person experiences, aided by lower inflation on goods compared to 2023.”
While the season saw record-breaking numbers, it also highlighted a return to traditional shopping habits, with an emphasis on early buying. The data suggests that consumers, despite their relative financial health, remain budget-conscious as they navigate inflationary pressures.
The total sales for the 2024 holiday season, spanning November 1 through December 31, included online and non-store sales, which experienced an 8.6% increase, reaching $296.7 billion. Online sales alone were up from $273.3 billion in 2023. These figures exceeded NRF’s expectations for the category, which projected growth of 8% to 9%.
The December retail performance also reflected growth, with core retail sales rising by 0.4% month-over-month seasonally adjusted, and 4.2% year-over-year, marking a continued positive trend. However, the timing of Thanksgiving in 2024 had an impact, pushing key shopping events such as Thanksgiving Sunday and Cyber Monday into December.
The NRF also provided insights into the holiday job market, estimating that 438,000 seasonal workers were hired in November and December, aligning with expectations of 400,000 to 500,000 hires. This job growth was indicative of the retail sector’s strong demand during the busy season.
Sales performance varied across retail categories, with online and non-store sales leading the charge with an 8.6% increase. Other sectors experiencing strong gains included furniture and home furnishings stores (up 5.6%), and electronics and appliance stores (up 3.7%). Meanwhile, some sectors, like sporting goods and building materials, showed little change.
In summary, the 2024 holiday shopping season exceeded expectations, signaling not only a solid end to the year but also a positive outlook for the year ahead. The figures highlight a balanced shift towards online shopping, a return to physical store experiences, and a resilient consumer base despite ongoing economic challenges.
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