Consumers Made 2011 a Record Year for Retail Sales

On January 12 the Census Bureau gave us the preliminary (“Advance”) data for retail sales for December and the full year of 2011. They said total retail and food services sales were $4.7 trillion in 2011. That was a new record, up a big 7.7 percent from 2010.

Total retail sales alone were $4.2 trillion, up 7.9 percent from 2010. Every major category posted increases for 2011.

The largest growth was in sales at gasoline stations. They rose 17.7 percent to $533.6 billion. That was due to price increases, of course.

Nonstore retailers were in second place, up 12.5 percent to $397.0 billion. Motor vehicle and parts dealers had the third largest increase, up 9.9 percent to $817.9 billion.

Miscellaneous store retailers posted an increase of 8.1 percent to $121.1 billion, while food services and drinking places racked up sales of $494.2 billion in 2011, an increase of 6.1 percent. Clothing and clothing accessory stores saw sales hit $226.5 billion, a rise of 5.9 percent. Building materials and garden equipment and supply dealers were right behind with a 5.7 percent increase to $300.2 billion.

General merchandise stores did not do very well in 2011. Their sales rose only 3.5 percent to $630.9 billion.

Reflecting big declines in TV pricing, electronics and appliance stores saw sales eke out only a 0.4 percent gain in 2011. Their total was $100.9 billion.

Consumers may have been miserable in 2011, as reflected in every survey of consumer sentiment, but that sure didn’t stop them from spending. Rising employment and incomes in 2012 should guarantee another year of record retail sales and overall personal consumption expenditures.