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December Retail Sales Rise Year-Over-Year, but E-Commerce Rises Faster
December 2024 retail sales increased by 3.4% compared to December 2023, reflecting resilience in consumer spending despite inflationary pressures, Avison Young reported. The growth metric excludes auto parts, motor vehicle and gas station sales.
Although electronics and furniture sales surged in December, brick-and-mortar foot traffic at electronics and appliance stores dropped significantly, while home furnishings foot traffic increased only slightly. “Sales of clothing and accessories grew largely between the two holiday seasons, but foot traffic remained flat,” according to Avison Young. “The rise of online shopping platforms continues to shape purchasing behavior.”
Online retail sales grew by 10.2% year over year, reinforcing the sustained consumer preference for e-commerce, particularly during peak holiday shopping days like Cyber Monday and Super Saturday. “Retail sales from the 2024 holiday season showed us two things – consumers did not hold back on their spending and online sales growth continues to outpace in-store,” said Meghann Martindale, Avison Young principal and director market intelligence, retail.
She continued, “The surge in sales with moderate increases in foot traffic also suggests higher spend per person. We will continue to monitor these trends closely this year and the implications it may have to the retail real estate market.”
