Total retail sales for November were nearly flat at 0.3% increase over October. This was slower than … [+]
U.S. retail sales growth has slowed in November compared to October according to the U.S. Monthly Trade Report. Total retail sales for November were nearly flat at 0.3% increase over October. Department stores had the largest drop for the major retail segment at minus 5.4% followed by electronics and appliances at minus 4.6%, and discount stores at minus 0.3%. The strongest categories were food services up 1.0% and grocery up 0.9%. November e-commerce and other non-store sales were flat to October.
Black Friday shift partly to blame
The shift of Black Friday promotions from November into October jump started holiday shopping this year and moved sales earlier in the season. Last year as a result of the pandemic, many retailers began the trend of promoting holiday shopping in October, resulting in sales shifting from November to October. Sales in November 2020 were down 1.4% compared to October 2020. Prior to 2020, November sales were generally higher than October (2008 was an exception due to the stock market crash). Black Friday in October has leveled out spending across October and November. The other considerations to a growth slow-down this month are supply chain congestion resulting in lack of stock and inflationary pricing.
Department stores had the largest drop in growth from the major retail segments at minus 5.4% … [+]
Most categories up from 2020
Retail sales were up 17.9% in November compared to 2020 and up 22.4% compared to 2019. Inflationary pricing and fewer sales promotions this year are contributing to the higher sales. Categories making a strong comeback after a soft year in 2020 are food services up 36.7%, apparel up 35.1% and department stores up 24.9%. Non-store sales remain strong, up 12% in November compared to 2020 and 42% ahead of 2019.
Holiday seasonal sales remain strong in October and November
Combined sales for October and November are ahead of last year by 17%. While electronics and appliances, a typically strong category for holiday sales, dipped in November versus October, the category is up 17.3% for combined sales in October and November compared to last year. Food services and apparel/accessories are strong categories, up over 31% for the combined months compared to 2020. Department stores, heavily reliant on apparel and accessories, are up 24% and discount stores up 12% for the two month period.
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