US Retail Sales Rise Ahead of Holidays

RAPAPORT... US retail sales showed "particularly impressive" growth inOctober as shoppers prepared for the upcoming holiday season, according to the National Retail Federation (NRF). Total purchases for October - excluding automobiles,gasoline and restaurants - rose 0.2% compared to the previous month, accordingto data the NRF published Friday. Monthly salesclimbed 4.2% year on year for the period, particularly impressive given the sharp growth in the same period a year ago, when sales were up an unusually strong 5.8%,NRF chief economist Jack Kleinhenz explained. "Despite the gradual slowdown in the US economy, consumersare in a good place and October's retail sales are a step forward into theall-important holiday season," Kleinhenz added. However, imports at the US's major retail container portshave been impacted by the trade war leading up to the holiday season, the NRFnoted. In August, prior to the first round of tariffs which was implemented in September, imports saw theirsecond-highest level on record, according to data from NRF's Global PortTracker. In September, imports inched up 0.2% year on year to 1.87 million20-foot equivalent units (TEU), but fell 4.7% from the previous month. NRF expects October imports to decline 5.2% from the samemonth a year ago, while November is predicted to be up 8.3% year on year priorto the last round of tariffs, scheduled to take effect December 15. WhilePresident Donald Trump announced a tentative agreement on a partial trade dealwith China last month, the measure has not yet been signed. Meanwhile, 165.3 million people plan to shop over thefive-day Thanksgiving weekend, according to a survey the NRF conducted withProsper Insights & Analytics. Of those, 39.6 million expect to shop onThanksgiving Day, while 114.6 million will spend their money on Black Friday.Nearly 100 million will buy goods on Saturday and Sunday, while 68.7 millionwill lay out cash on Cyber Monday. "We expect the biggest increase in potential shoppers forThanksgiving Day this year," Phil Rist, executive vice president of strategyfor Prosper Insights, said. "We anticipate that people may head to stores ifthey are open, or shop from their phones while watching football." Of those planning to shop, most are younger consumers, with88% of 18- to 24-year-olds heading to the stores, and 84% of those aged 25 to34 running out to purchase goods, NRF noted. About 47% will buy in-store, while 41% expect to shop online. Some 65% of consumers say they plan to purchase over theholiday period because the deals are too good to pass up, while 28% citetradition as their main reason. Of the consumers who indicated they did not expectto shop over the holidays, more than half stated something could convince themto make a purchase, with the top motivator being a sale or discount offered onitems they want. Image: Customers shopping at a US mall. (Shutterstock)