Holiday sales rose 3% in 2007

According to the National Retail Federation, retail industry sales for December (which exclude automobiles, gas stations, and restaurants) rose 1.7% unadjusted over last year and decreased 0.4% seasonally adjusted from November. In addition, November retail industry sales were revised downward to 4.7% growth from the initial 5.1% that was reported last month.

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%.

December retail sales released by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) dipped 0.4% seasonally adjusted from last month and rose 3.2% unadjusted year-over-year. 

Seasonal bright spots were seen by 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 small gains, with sales increasing 2.1% year-over-year and 0.3% from the previous month. Weakness was seen by clothing and clothing accessories stores, furniture and home furnishings stores, and department stores.

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