FEBRUARY 2004

Holiday Spending Made Retailers Smile

U.S. retailers enjoyed a happy holiday season after all, according to the National Retail Federation (NRF). Retail sales in the GAFS category (general merchandise stores, clothing and clothing accessories stores, furniture and home furnishings stores, electronics and appliances stores, and sporting goods, hobby, book and music stores) totaled $216.3 billion this holiday season, up 5.2% from the same season in 2002. NRF Chief Economist Rosalind Wells said “ a variety of economic and social factors came together just in time for the most important shopping season of the year.”

Electronics and appliance stores recorded the largest gains, with sales in December rising 12.4% relative to a year earlier. Furniture and home furnishings stores experienced a 9.9% increase from a year earlier. An additional boost to all categories may be recorded in the early weeks of 2004. This is because gift cards, which are estimated to account for 8% of all holiday sales, are not recorded as a sale until redeemed for merchandise. Gift cards not redeemed by December 31, 2003 are not yet counted in the holiday sales totals.