Retailers are likely to face the Thanksgiving, Black Friday and Christmas shopping season with a smaller degree of panic after government data showed better-than-expected sales in October.
Retail sales jumped 0.4 percent last month, according to the U.S. Census Bureau, handily exceeding the 0.1 percent increase anticipated by economists surveyed by Bloomberg. And the September performance, which caused deep concern when initially reported as a 0.1 percent decline, was revised up to reflect no change.
Total sales last month reached $428.1 billion, a 3.9 percent boost from October 2012.
The government measure is the last major marker of industry health before the consumption frenzy set to take place next week on Thursday and Friday – the traditional kickoff to holiday shopping.
This year, however, the period between Thanksgiving and Christmas is one week shorter than it was last year, giving retailers less time to attract gift-buyers. And in a season that can account for up to 40 percent of a retailer’s annual revenue, the time crunch – coupled with weak consumer confidence and the lingering effects of the government shutdown and the payroll tax increase – has the industry poring over the crystal ball.
Data show promise
Wednesday’s government report showed promising news.
Vehicle sales soared 1.4 percent from September to October, rocketing up 11.9 percent year over year. And gasoline station sales slipped 0.6 percent from September, representing a breather from high prices at the pump.
With the auto and fuel categories stripped out, along with food service, pure retail sales were up 0.3 percent month to month and up 3.9 percent from 2012.
Electronics and appliance retailers enjoyed a 1.4 percent upswing from September and a 4.8 percent surge year over year. Clothing and accessories stores saw the same monthly boost, rising 3.8 percent from last year.
Wednesday’s government report even found that the building materials and home-supply sector, which slumped 1.9 percent month to month, was up 4.2 percent from 2012.