Retail sales south of the border rose in November as continued low gasoline prices and a slowdown in auto purchases made for more clothing and electronics buying, providing some hope to retailers looking for a stronger finish to a holiday shopping season that started so dismally.
The uptick in retail sales came at the expense of car sales, which suggests consumers just don’t have the extra cash, or access to credit, to both shop and buy that new ride.
The U.S. Commerce Department reported Friday that sales at retailers and restaurants moved up a seasonally-adjusted 0.2% in November from October, the largest increase since July. But the rise comes after three months of near non-existent growth, and largely due to a 0.4% fall in auto sales.
Retailers said consumers are and have been pacing themselves throughout November and December, rather than bingeing around U.S. Thanksgiving before taking a break. They expect steady sales through the rest of the year, after Black Friday packed a less-than-hoped-for punch. But the lack of breakout demand has left retailers with little pricing power as they compete for consumers who aren’t yet feeling flush.
