December Retail and Food Services Sales Surge 3.9% Year-Over-Year: Key Insights from PYMNTS.com

In December, retail and food service sales in the United States climbed by 0.4% from November and rose 3.9% from the same month in 2023. These figures come from advance estimates released by the Census Bureau.

November also showed positive growth, with sales up 0.8% month-over-month and 4.1% year-over-year.

Out of 14 business categories, 11 reported sales gains in December. The biggest winners included:

• Miscellaneous store retailers, up 4.3%
• Sporting goods, hobby, musical instrument, and book stores, up 2.6%
• Furniture and home furnishings stores, up 2.3%

Nonstore retailers, which cover eCommerce and similar business models, increased by 0.2% compared to November.

However, a few categories saw declines in December. These were:

• Building material and garden equipment, down 2%
• Food services and drinking places, down 0.3%
• Health and personal care stores, down 0.2%

For all of 2024, total sales were up 3% from 2023. The National Retail Federation (NRF) highlights that this growth indicates a strong U.S. economy.

During the holiday season, core retail sales (excluding automobiles, gas stations, and restaurants) rose 4% from the previous year, underscoring consumer spending strength. NRF Chief Economist Jack Kleinhenz noted that the spending pace is returning to pre-pandemic levels, suggesting a positive trajectory for the coming year.

Target recently adjusted its sales forecast after experiencing record sales following Thanksgiving. They now expect a 1.5% increase in comparable sales for the fourth quarter, up from earlier projections of flat growth. The retailer reported significant increases in discretionary categories, particularly apparel and toys.

In another report, Mastercard announced a 3.8% rise in retail sales during the holiday shopping season, with online sales growing by 6.7%. Visa confirmed a similar trend, noting a 4.8% increase in holiday spending, with a 7.1% rise in online retail spending.