Holiday sales during November and December increased 5.5% last year to $691.9 billion as growing wages, stronger employment and more confidence led consumers to spend more than had been expected, according to the National Retail Federation (NRF). The total, which excludes restaurants, automobile dealers and gasoline stations, includes $138.4 billion in online and other non-store sales, which were up 11.5% over the year before.


The results exceeded NRF’s forecast of between $678.75 billion and $682 billion, which would have been an increase of 3.6-4%, and marked the largest increase since the 5.2% year-over-year gain seen in 2010 after the end of The Great Recession. NRF had forecast that non-store sales, which include online sales, would grow between 11 and 15% to between $137.7 billion and $142.6 billion.


December alone was up 0.4% seasonally adjusted from November and up 4.6% unadjusted year-over-year.


“We knew going in that retailers were going to have a good holiday season but the results are even better than anything we could have hoped for, especially given the misleading headlines of the past year,” NRF president and CEO Matthew Shay said. “Whether they shopped in-store, online or on their phones, consumers were in the mood to spend, and retailers were there to offer them good value for their money. With this as a starting point and tax cuts putting more money into consumers’ pockets, we are confident that retailers will have a very good year ahead.”


“Retail has proven once again that it is the nimblest industry in the economy, able to transform and reinvent itself to meet always-changing consumer demands,” Shay said. “Retail today doesn’t look like retail 10 years ago and it certainly won’t look the same in another 10 years. But retail is retail, and will always be here to serve its customers.”