Holiday sales hit new record — so do full-year sales

Despite inflation and high interest rates, consumers ramped up their spending in December, helping to end the holiday season and full year on an upbeat note.

Core retail sales during the 2023 holiday season grew 3.8% over 2022 to a record $964.4 billion, according to U.S. Census Bureau data. The results easily met the National Retail Federation’s forecast that holiday sales would increase between 3% and 4% over 2022 to between $957.3 billion and $966.6 billion.

Sales for the full year grew 3.6% over 2022 to a record $5.13 trillion.

The 2023 holiday sales results top the previous record of $929.5 billion spent during the 2022 holiday season. Despite a slower growth rate compared with the past three years, when trillions of dollars of stimulus led to unprecedented rates of retail spending during the pandemic, 2023’s holiday spending was consistent with the average annual holiday increase of 3.6% from 2010 to 2019.

The holiday total, which is not adjusted for inflation, includes online and other non-store sales, which were up 8.2% at $276.8 billion. 

“Consumer spending was remarkably resilient throughout 2023 and finished the year with a solid pace for the holiday season,” said NRF chief economist Jack Kleinhenz. “Although inflation has been the biggest concern for households, the price of goods eased notably and was helped by a healthy labor market, underscoring a successful holiday season for retailers.”

December

For December alone, core retail sales were up 0.7% seasonally adjusted from November and up 3.3% unadjusted year over year. By comparison, sales were up 0.4% month over month in November and up 4.2% year over year. 

Overall December retail sales — including autos, gas and restaurants —were up 0.6% from November and up 5.6% year over year, according to the Census Bureau.

November-December holiday sales saw year-over-year gains in all but two of nine retail categories, led by electronics and appliance stores, health and personal care stores and online sales.

Specifics from key sectors for the two months combined, all on an unadjusted year-over-year basis, include:

• Electronics and appliance stores were up 9.3%. 
• Health and personal care stores were up 9%.
• Online and other non-store sales were up 8.2%.
• Clothing and clothing accessory stores were up 3%.
• General merchandise stores were up 2%.
• Grocery and beverage stores were up 1.1%.
• Sporting goods stores were up 0.3%.
• Building materials and garden supply stores were down 3.9%.
• Furniture and home furnishings stores were down 6%.