Retail sales in the US showed up good with an increase of 0.6% this November over the previous month, with the festive season kicking off, bringing cheer to retailers.

Sales registers at retail stores in the US ringed loudly in November 2007. Wage gains coupled by discounts helped the Americans to cope with the record-high fuel costs. Thus, purchases shot up by 0.6% this November, following a 0.2% increase in the previous month of October, according to estimates of Bloomberg News survey, as per the news published by Bloomberg.

The publicity surrounding "Black Friday", the day following the Thanksgiving holiday, which is usually marked as the beginning of the shopping season, sent the sales registers on a jump. And retailers made the most out of the occasion.

The chill in the weather also helped in spurring retail sales during November. Cold-weather commodities like coats and sweaters sold in great numbers as climate was cooler than the previous year’s November.

Employment figures of the country too bettered than the forecast for the November month. Jobless rates didn’t go high either, as per reports of the Labor Department. In the meanwhile, hourly wages too went up beyond the forecasts made by the economists.

The robust growth in the field of online shopping was another significant factor that helped overall retail sales. The increasing penetration of Internet and lack of time with consumers to go for shopping in the markets has pushed up online shopping. Besides, the new breed of tech-savvy Americans found online shopping a convenient option to shop from the comfort of their homes.

Moreover, results show that its high-end shoppers who indulge in splurging. Shoppers in the middle and lower-income group spent only for their necessities and looked forward to bigger discounts. High gasoline prices and dwindling home equity has caused a chill for the festive holiday season. For this reason, America’s second largest discount chain, Target Corp., said that retailers will have to struggle to further their sales in December 2007.

As per a Senior Research Analyst at RNCOS, “The US retail industry was grappling with eroding consumer confidence and a slump in sales. The robust growth in November has somewhat boosted the confidence of retailers. However, retailers will have to keep on discounting as housing problems and gas prices decline are nowhere in sight”.

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