National retail sales during the holiday season are expected to show a 5.5 percent increase over last year, according to a report released this week by Mastercard Advisers SpendingPulse.
The report tracked retail sales from Nov. 5 through Dec. 24.
If last years holiday story was about gaining some stability, this years is about getting back to growth, said Michael McNamara, vice president of research and analysis for SpendingPulse.
Freezing temperatures across the country are seen as the spark that ignited the 11.9 percent year-over-year jump in apparel retail sales, as many marched off to stores in search of warmer clothes.
While there was some disruptive weather in the Midwest and the West Coast toward the end of the season, the conditions did not seem to negatively impact the national sales momentum. In some cases the weather may have also benefited the eCommerce channel, McNamara said.
Nationally, Internet retail sales jumped 15.4 percent over 2009. Jewelry and luxury items also saw an increase, witnessing an 8.4 percent and 6.7 percent growth in holiday sales, respectively. Sales of electronics were down, comparatively, with just a 1.2 percent rise from 2009.
The cold snap did not spare Florida, but for retail and tourism -- certainly not for agriculture -- that was a good thing, because the weather had no ill effect.
You got the benefit of people needing sweaters and jackets, but it wasnt bad enough to keep them out of the stores, said Rick McAllister, president and CEO of the Florida Retail Federation.
Before the holiday shopping season started, the FRF predicted a 4 percent rise in statewide sales compared to 2009, better than the national expectations of a 2.3 percent increase. The better-than-expected national numbers, however, dont necessarily mean Floridas retail sales will beat the predictions when official statistics are released in January.
Some sectors are going to be up. Theres probably not going to be a big increase in home furnishing, home improvement stores. Probably not going to be a big increase in grocery and retail pharmacy, McAllister said.
Still, McAllister is hoping the boost in apparel sales will put Floridas holiday retail sales numbers over his forecast.
That 4 percent number, a lot of people thought hes crazy when I said that. That number will be hit, and could be exceeded, he said.
The extremely slow recovery of the national economy, dragged down by a 9.8 percent unemployment rate, was expected to temper holiday sales, but consumer confidence is beginning to rebound among those who were able to stay afloat during the recession.
The unemployment rate has been the one thing thats been concerning us. Home sales, the prices are down, but the activity has picked up. People are seeing their 401ks increase, McAllister said.
Reach Gray Rohrer at grohrer@sunshinestatenews.com or at (850) 727-0859.
