Sales rise, raising retail hopes for 2024

Holiday sales rose 3.8% year over year to $964.4 billion, according to the National Retail Federation, as consumers spent on gifts and celebrations even after enduring a prolonged period of higher prices.

The tallied results, released by the NRF on Wednesday and based on retail sales data from the Commerce Department, were roughly in line with the major trade group’s expectations. The holiday sales total was not adjusted for inflation and included both in-store and online purchases.

Ahead of the holiday season, NRF had predicted that sales in November and December would rise 3% to 4% year over year to between $957.3 billion and $966.6 billion in spending. The forecast and holiday total exclude sales at automobile dealers, gas stations and restaurants.

The results echo findings of the CNBC/NRF Retail Monitor, which showed that holiday shoppers closed out the year on a positive note. In the two key months of the season, November and December, the Retail Monitor rose 3.7% and core retail gained 3.3% year over year, excluding autos and gas.

NRF’s chief economist Jack Kleinhenz said easing inflation and a strong labor market helped prop up holiday shopping.

“Consumer spending was remarkably resilient throughout 2023 and finished the year with a solid pace for the holiday season,” he said in a news release.

Nearly every retail category saw year-over-year gains. Electronics and appliance stores and health and personal care stores led the way with sales gains of 9.3% and 9%, respectively. Online sales and other nonstore sales rose 8.2% year over year.

On the other hand, sales at sporting goods stores were roughly flat, and sales at building materials and garden supply stores fell 3.9%. Sales at…