National Retail Federation Reports U.S. Holiday Spending Declines

The National Retail Federation (NRF) reported that total estimated spending during the Thanksgiving holiday weekend decreased compared to last year, as shoppers utilized earlier store openings on Thanksgiving Day.

The NRF projected overall spending for the weekend to be around $57.4 billion, a decline from $59.1 billion in 2012. This marks the first decrease in spending since 2009. Consumers spent an average of $407 from Thursday through Sunday, compared to approximately $423 during the same period in 2012.

According to the NRF, earlier discounts encouraged consumers to shop before the weekend, coupled with substantial markdowns that contributed to lower prices.

Despite the decline over the holiday weekend, the retail industry group anticipates a 3.9% increase in total holiday sales through the end of the year, reaching an expected $602.1 billion.

Thanksgiving Day saw a 27% increase in foot traffic, with nearly 45 million shoppers visiting stores, up from 35 million last year, as retailers opened their doors earlier. Matthew Shay, president and CEO of the NRF, noted that Thanksgiving Day is becoming a crucial element of the overall shopping weekend, emphasizing that consumers are eager to be out that evening, and retailers are adapting accordingly.

Black Friday remained the busiest shopping day, but foot traffic only rose by 3.5% compared to last year, totaling 92 million shoppers, according to the retail group.

Overall, more than 141 million shoppers visited physical stores and retail websites from Thanksgiving through Sunday, a slight increase from 139 million during the same period last year. On average, consumers spent $177.67 online, making up 44% of their total weekend shopping.