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Retailers Start New Year with a Bang, According to National Retail Federation
--Gift Card Redemption and Clearance Sales Give Retailers Strong January--
he holiday season extended into January
for many retailers, as consumers flooded the stores with gift cards in-hand
ready to take advantage of clearance sales. According to the National
Retail Federation (NRF), retail industry sales for January (which exclude
automobiles, gas stations, and restaurants) increased a solid 7.6 percent
over last year and rose 2.0 percent seasonally adjusted over December.
“The spectacular growth we saw in January was an unexpected surprise for the
industry,” said NRF Chief Economist Rosalind Wells. “While our 2006 outlook
for the retail industry remains cautious, consumers responded well to the
popularity of gift cards, mild winter weather and aggressive clearance
sales. We expect to see a continuation of the heavily promotional
environment.”
January retail sales released today by the U.S. Commerce Department show
that total retail sales (which include non-general merchandise categories
such as autos, gasoline stations and restaurants) rose 2.3 percent
seasonally adjusted from December and increased 8.9 percent unadjusted
year-over-year.
There was strong year-over-year sales growth across most retail categories
in January. The impressive showing came from building material and garden
equipment and supply dealers. Consumers are not quite finished investing in
their homes as sales in this category increased a staggering 17.6 percent
year-over-year. Furniture and home furnishing stores also showed strong
gains. Sales were up 9.5 percent from January 2005.
Additionally, strong year-over-year gains were seen at clothing and clothing
accessories stores (9.7%), health and personal care stores (8.1%) and
sporting goods, hobby, book and music stores (6.5%).
The National Retail Federation is the world 's largest retail trade
association, with membership that comprises all retail formats and channels
of distribution including department, specialty, discount, catalog,
Internet, independent stores, chain restaurants, drug stores and grocery
stores as well as the industry 's key trading partners of retail goods and
services. NRF represents an industry with more than 1.4 million U.S. retail
establishments, more than 23 million employees - about one in five American
workers - and 2005 sales of $4.4 trillion. As the industry umbrella group,
NRF also represents more than 100 state, national and international retail
associations. www.nrf.com.
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