Shoppers walk through UrbanSpace Holiday Shops in Bryant Park on Sunday, December 12, 2021 in New York, US.
Gabby Jones | Bloomberg | Getty Images
Holiday sales fell short of industry expectations, according to data from the National Retail Federation, as shoppers felt the pinch from inflation and rising interest rates.
Sales during November and December rose 5.3% year over year to $936.3 billion, well below the leading trade group’s forecast for growth of between 6% and 8% from the prior year. In early November, the NRF had Estimated spending between $942.6 billion and $960.4 billion,
The sales forecast does not include spending at automobile dealers, gasoline stations and restaurants.
Profit also includes the effect of inflation, which increases total sales. Consumer Price Index, which measures the cost of a broad mix of goods and services, was up 6.5% in December compared to a year ago, according to the Department of Labor
For retailers, the results of the shopping season reflect the challenges ahead. As Americans continue to pay higher prices for groceries, housing and more month after month, they are racking up credit card balances, reducing savings and have fewer dollars for discretionary spending.
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