As the National Retail Federation (NRF) kicks off its annual “Big Show” at the Javtis Center in New York City this week, some encouraging news has emerged regarding holiday performance.
Both the NRF and the U.S. Census Bureau report that retail sales for the 2021 holiday season made year-over-year gains when compared to 2020. The NRF says that sales during the tracked holiday season of November/December spiked 14.1% over 2020. The record $886.7 billion beat expectations and forecasts, which predicted growth between 8.5% to 10.5%. The U.S. Census Bureau — which tracks data using different methodology — reported a 16.9% year-over-year spike on sales in December, but notes that the number was down slightly from November.
“We closed out the year with outstanding annual retail sales and a record holiday season, which is a clear testament to the power of the consumer and the ingenuity of retailers and their workers,” says NRF President and CEO Matthew Shay. “Despite supply chain problems, rising inflation, labor shortages, and the omicron variant, retailers delivered a positive holiday experience to pandemic-fatigued consumers and their families. Consumers were backed by strong wages and record savings and began their shopping earlier this year than ever before. This is, in part, why we saw a decline in sales from November to December.”
Shay says that the NRF expects to see further retail growth in 2022, a sentiment echoed by NRF Chief Economist Jack Kleinhenz.
“Even though many consumers began shopping in October, this was the strongest November and December we’ve ever seen,” Kleinhenz says. “Despite supply chain challenges, retailers kept their shelves stocked and consumers were able to fill their carts both in-store and online. Holiday spending during 2021 reflected continued consumer demand that is driving the economy and should continue in 2022. Nonetheless, we should be prepared for challenges in the coming months due to the substantial uncertainty brought by the pandemic.”
NRF 2022: Retail’s Big Show takes place through Jan. 18.
