by Doug Desjardins
After two consecutive years of disappointing holiday sales, retailers this year finally saw the rebound they’ve been waiting for.
Depending on whose estimates you rely on, retail sales jumped anywhere from 4 percent to 6 percent during the holidays, easily beating early forecasts calling for increases in the 2- to 3-percent range.
The MasterCard Spending Pulse survey estimates retail sales rose 5.5 percent during the holidays compared to a 4.1-percent increase in 2009. MasterCard cited apparel and jewelry as two categories that drove sales, which totaled $584 billion for the period from Nov. 5 through Dec. 24.
“If last year’s holiday story was about gaining some stability, this year’s is about getting back to growth,” said Spending Pulse vice president Michael McNamara. Apparel sales increased 11.2 percent and spending was also strong in the jewelry and furniture categories. 
Research firm Customer Growth Partners (CGP) estimates holiday sales were even better. The company reported that sales increased 6 percent during the holidays and were strong across all categories and channels, including department stores and specialty stores.
“The American consumer is back, big time,” said Craig Johnson, president of CGP. “He has single-handedly strapped the economy on his back, climbed out of the ditch and is off and running despite 10 percent unemployment.”
Earlier this month, there was some fear among analysts that retail sales in December would be cannibalized by stronger-than expected November sales but that never materialized. The Retail Council of New York State reported that sales were strong right up until Christmas Eve, with 84 percent of retailers polled reporting that sales were better during the week before Christmas than they were in 2009.
“We anticipated this year’s holiday sales would be better than 2009 but we were surprised by just how willing many consumers were to spend in the wake of the worst recession in decades,” said James Sherin, president of the Retail Council of New York State. “This exemplifies how difficult it is to predict consumer behavior. All bets are off once a consumer walks through the door of their favorite store.”
The International Council of Shopping Centers (ICSC) reported the lowest holiday sales increase, with its survey estimating that sales jumped 4 percent. But it also reported that consumers spent right up until to the last minute during Christmas week, which could bode well for 2011.
“It topped off a relatively strong season and one that, when all the dust settles, looks pretty good for same-store sales growth,” said ICSC chief economist Michael Niemira. “This is quite encouraging.”
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U.S. Holiday Retail Sales Jump 5 Percent
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