NRF: Nov. sales offer retailers encouragement for holiday season

Washington , D.C. Low prices and pent-up demand helped entice Americans back into the stores in November, according to the National Retail Federation. Retail industry sales (which exclude automobiles, gas stations, and restaurants) rose 0.6% seasonally adjusted from October and dipped 0.8% year-over-year.

"Unlike last year, when the economic downturn caught everyone off-guard, retailers were able to plan ahead this holiday season with an eagle eye on low inventory and aggressive discounts," said NRF chief economist Rosalind Wells. "Retailers are encouraged to see momentum building in sales as they prepare for the final ten days before Christmas. Although November sales were encouraging, companies know that the holiday season is far from over and expect this year to come down to its usual photo finish."

General merchandise stores and drug stores, which have been bright spots in retail, continued to shine in November. General merchandise stores saw positive gains of 0.8% seasonally adjusted from October and increased 1.2% unadjusted from November 2008. Health and personal care store sales rose 0.3% unadjusted month-to-month and jumped 4.5% year-over-year.

Most categories saw month-to-month gains, demonstrating that shoppers were gearing up for the holiday season. Sales at electronics and appliance stores increased 2.8% seasonally adjusted from the previous month while decreasing 2.9% seasonally unadjusted year-over-year. Sporting goods, book, hobby and music stores also saw a slight month-to-month increase of 0.3%, though year-over-year sales dropped 1.3%.