December 2010 National Retail Sales Results

The most exciting part of the retail business is seeing broad-based growth across the industry. I’m happy to report that U.S. retailers have just landed the best holiday season since 2006. There is some evidence that conservative inventory positions may have limited some retailer potential for December.

The ICSC group reported a 3.8% combined Nov-Dec comparable store sales increase. This compares to 2006 when the industry reported an increase in the 4.4% range. Think back to 2006. I don’t recall any complaints about sales that year! Although the pure December sales increase has been reported as +3.1%, when combined with the 5.8% November increase the 2010 holiday season is one that most retailers can be proud of.

In November I talked about consumers looking for good value. Although we have a few teen retailers who didn’t attract their customers with competitive value, others like Zumiez, Buckle and Abercrombie did and delivered excellent comp store increases ranging from +6.1% to +15%.

During a post-holiday tour I visited a JC Penney store to find the men’s sales area with virtually blank walls and little RTW to sell. When asked, a salesperson replied, “Our stockroom is completely empty. We sold all our clothes.” On the Monday after Christmas, Nordstrom in San Diego was swamped with eager-to-buy customers – it was a mad-house of retail activity! Nordstrom posted a +8.4% comp store performance for December. Macy’s and Kohl’s both turned in respectable increases of +3.9%.

At the end of the day it’s all good. Many retailers took advantage of their pre-holiday trend and planned inventories to support growth. Their focus on value with well-planned inventories and promotions generated solid business that will likely continue in first quarter 2011. Consumers are buying and the best retailers are giving them what they want.

Click here for November National Retail Sales Results