Retail sales during the holiday season increased 8.3% year over year last year, according to data released by the National Retail Federation (NRF) on Friday.
“In the face of the continuing spread of the coronavirus, government restrictions on retailers, and political and economic uncertainty, consumers are choosing to send gifts to lift the spirits of family and friends and provide a sense of normalcy during a challenging year,” the NRF Chairman and CEO said in a statement.
The NRF predicted in November of last year that the 2020 holiday season sales would increase by 3.6% to 5.2% year over year, reaching 755.3 billion US dollars to 766.7 billion US dollars. The NRF believes Americans will spend more money because they have reduced the cost of traveling and eating out, and are hopeful about the distribution of the COVID-19 vaccine.
According to the NRF, holiday season sales increased by an average of 3.5% over the past five years, and increased 4% in 2019. Sales do not include car dealerships, gas stations, and restaurants.
The COVID-19 pandemic has changed the typical US holiday shopping pattern. Many retailers began their promotions as early as October and closed their stores during Thanksgiving. They have launched more promotions online and expanded contactless options such as curbside pickup to reduce crowded traffic in stores.
The retailer's holiday sales results so far seem to reflect trends related to the pandemic. As people work in isolation from home, yoga clothing brand Lululemon's sports and leisure products business is performing well. Due to strong sales during the holiday season, Lululemon expects fourth-quarter earnings to reach the high end of the expected range. Target (Target) said that in November and December of last year, comparable online and in-store sales increased 17% as customers flocked to convenient contactless options such as curbside pickup. However, the report from department store chain Nordstrom and affordable clothing brand Urban Outfitters was disappointing, as many consumers avoided shopping malls.