The US retail sector has shattered previous records, with core retail sales during the 2024 holiday season increasing 4% over the previous year’s $955.6bn to reach $994.1 bn.
The surge in sales volume from 1 November to 31 December 2024 exceeds National Retail Federation (NRF) projections of 2.5% to 3.5%.
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The NRF utilised data from the US Census Bureau, excluding automobile dealerships, gasoline stations and dining establishments, to concentrate on core retail.
This growth trajectory was not adjusted for inflation and encompassed online and other non-store sales, which soared 8.6% to $296.7bn, aligning closely with NRF’s predictions of an 8% to 9% increase.
Total core retail sales for 2024 reached $5.28tn, hitting the upper limit of NRF’s forecast and marking a 3.6% uplift from the previous year’s total of $5.1tn.
NRF chief economist Jack Kleinhenz stated: “Consumers came out to spend this holiday season and clearly underscored the solid growth in the US economy. The spending pace was back to pre-pandemic growth and indicates a good start for the year ahead.
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By GlobalData“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. The 2024 figures were driven in part by lower inflation compared with 2023, particularly for goods. Even though consumers are still relatively healthy and there was a notable increase in spending, they remain budget conscious.”
In December alone, sales in core retail sales rose by 0.4% seasonally adjusted from November, showing a year-on-year (YoY) unadjusted upswing of 4.2%.
This is notably higher than November’s month-on-month growth of 0.3% and a YoY increase of 3.9%.
During the holiday period, online and non-store sales led the way with 8.6% growth.
Sales in furniture and home furnishings stores saw a 5.6% increase, followed by 3.7% growth in electronics and appliance stores.
Health and personal care stores grew by 3%, while clothing and accessories saw a 2.8% rise.
General merchandise stores advanced by 2.4%, and grocery and beverage stores expanded by 2.1%.
Building materials and garden supply stores, along with sporting goods stores, held steady without registering growth.
In alignment with seasonal hiring trends, data from the US Bureau of Labor Statistics indicates that retailers onboarded approximately 438,000 temporary workers during November and December 2024, which falls within the NRF’s anticipated hiring range of between 400,000 and 500,000 seasonal employees.
