Nov. retail sales gains a positive sign

Arlington, Va. Retail sales were up slightly in November for the fourth consecutive month as store traffic was enough to offset smaller basket sizes, said the Retail Industry Leaders Association (RILA).

High unemployment and job insecurity continued to dampen consumer spending as cost conscious consumers sought out extreme value purchases.

Excluding auto sales, retail sales increased 1.2% over the previous month according to the U.S. Department of Commerce. Retail sales are up by 2.8% over the past four months and up by more than 4% since last December at the height of the financial crisis.

"Increased consumer activity in November is a welcome sign for retailers who have adjusted promotions, pricing and product assortment to appeal to consumers in search of the best value," said Casey Chroust, RILA’s executive VP for retail operations. "Although consumers are spending less per visit, increased store traffic is driving higher overall sales."

Sales increased in most retail categories in November. General merchandise stores such as department stores and discounters recorded their fourth straight monthly gain, with similar improvements for electronics and appliance retailers.

Building material sales had their strongest month in more than a year. Those areas of strength were partly offset, however, by a drop in clothing sales and ongoing continued decline in sales of furniture and home furnishings.