Holiday Shopping Picks Up in November as Consumers Boost Retail Spending

By Rosemary

Retail spending picked up in November as holiday shopping began in earnest, with consumers increasing purchases across several key categories despite ongoing concerns about inflation and economic uncertainty. The Commerce Department reported Wednesday that retail sales rose 0.6% in November, rebounding from a revised 0.1% decline in October. The release was delayed more than a month due to the recent 43-day federal government shutdown.

The November increase reflected stronger-than-expected activity, with consumers focusing their spending on gifts, clothing, and recreational goods. Sales at clothing and accessories stores rose 0.9%, while online retailers posted a 0.4% gain. Sporting goods and hobby stores saw the largest increase, with a 1.9% jump. However, not all sectors benefited equally; furniture and home furnishings stores posted a slight 0.1% decline, and sales at consumer electronics and appliance stores remained flat compared with October.

While the report does not account for many services, it does include restaurants, which saw a 0.6% increase, indicating that dining out remained steady amid broader economic caution. A measure of retail sales that excludes volatile sectors such as gas, autos, and restaurants rose 0.4% in November, signaling that discretionary spending remains resilient.

“Consumers are gloomy, but they are still spending,” said Heather Long, chief economist at Navy Federal Credit Union. “The only areas they are pulling back in are home improvement, home furnishings, and some electronics. Outside of those areas, consumers continue to spend, and that trend is likely to continue into early 2026 as larger-than-normal tax refunds arrive.”

The report comes as more than 41,000 industry professionals from retail, brands, and technology gathered for the three-day National Retail Federation convention. Discussions focused on how rising prices, the effects of tariffs, and a softening job market could affect holiday shopping. Despite some financial strain among lower-income households, early data indicate a solid holiday season for many retailers.

Employment trends have been mixed, and weak hiring could pose challenges for overall consumer spending in 2026. At the same time, inflation showed signs of easing in December, with the Labor Department reporting that consumer prices rose 0.3% from the prior month, the same increase as in November. Core prices, excluding volatile food and energy costs, rose 0.2%, matching November’s figure. Slower gains in manufactured goods suggest that some tariff-related price pressures may be diminishing.

The National Retail Federation projects that total retail sales for November and December grew between 3.7% and 4.2% over 2024, translating to a range of $1.01 trillion to $1.02 trillion. By comparison, holiday sales for 2024 rose 4.3% over 2023, reaching $976.1 billion. Final government figures for December retail activity will be released next month, providing a more complete picture of holiday consumer behavior.

Major retailers have reported strong preliminary results. Lululemon Athletica announced it expects fourth-quarter revenue and profit to hit the high end of its previously issued guidance, citing a robust holiday season. Abercrombie & Fitch also reported solid performance at its Abercrombie and Hollister stores during the holiday period. Analysts anticipate that upcoming reports from Walmart, Macy’s, and other large retailers will provide further insight into consumer spending trends and how the holiday season shaped overall retail growth.

Overall, the data suggest that despite ongoing economic concerns and higher prices, Americans continued to engage in holiday shopping, with discretionary spending supporting retailers as the year closed.