November’s sales data reflects American consumers’ willingness to spend amid a retail backdrop that incentivizes purchases by deals and discounts.
U.S. retail sales for last month rose 0.7 percent to $724.6 billion, representing a 3.8 percent gain from year-ago levels. Retail trade sales for November rose 0.9 percent, and were up 4.1 percent from last year’s figures. Retail sales for the month were helped by a strong 2.6 percent jump in auto sales. Excluding autos, retail sales rose just 0.2 percent.
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Fashion sales slipped in November as apparel and accessories retailers saw sales slip 0.2 percent to $26.32 billion, and sales at department store retailers were down 0.6 percent to $10.82 billion. Sales at nonstore retailers, the category that includes e-commerce sites, saw sales rise 1.8 percent to $127.1 billion.
“In the early days of the holiday shopping season, U.S. consumers drove a nearly 4 percent increase in November retail sales relative to 2023, albeit with continued mixed results across discretionary categories,” David Silverman, Fitch Ratings’ senior director said.
And while overall retail sales reflect shoppers’ resilience to headwinds such as inflation and rising interest rates, Silverman said consumers have been spending selectively, which has been reflected through softer results in categories that include consumer electronics and apparel.
“November is increasingly a difficult month to analyze on its own, as retailers introduce holiday promotions earlier and earlier, but these reported figures suggest a generally reasonable start to the season,” Silverman said. He noted that many retailers spoke about taking a cautious approach to the holidays in their third quarter earnings’ conference calls, which could indicate manageable inventory levels and disciplined expense management. “Post the holidays, all eyes will be turned toward the new presidential administration and the impact of topics like tariffs, immigration and taxation on consumer confidence and spending,” he concluded.
“With the elections behind us and following a strong October, consumers maintained optimism, driving impressive retail spending in November,” said Chip West, RRD’s retail and consumer behavior expert, who added that lower fuel prices likely freed up greater purchasing power. “Retailers’ widespread promotions further incentivized purchases, as price-conscious consumers capitalized on deals and discounts.”