Retail spending grew in January


Retail Industry Leaders Association says that the December holiday spending season was strong, and that means that a very small month-over-month increase in spending in January, despite challenging weather patterns, is a very good thing.

The change month-over-month, as measured by the U.S. Department of Commerce, was indeed very small – we are talking only 0.3%. But comparing January 2011 to January 2010 tells the real story: Sales year-over-year are up an impressive 7.8%.

“The continued growth in consumer spending, particularly following a strong holiday shopping season, is welcome news to the retail industry,” said RILA President Sandy Kennedy. “As retailers restock for springtime, they do so with confidence that the recent growth will continue.”

RILA noted that the uptick in January marked the seventh consecutive monthly increase. The organization noted that high unemployment remains a problem and that the growth in spending is coming despite it. The good news is that as the jobs picture improves, so will spending.

Kennedy concluded, “The improved forecast means retailers can begin shifting their attention back to the growth plans that were on hold during the recent recession.”

RBR-TVBR observation: The time to start knocking on the doors of retail clients who wish to participate in spring spruce-up spending is now.