Retailers can celebrate, as the November haul of quick cash was better than anticipated. Image from Wikimedia Commons.
The retail industry has cause to celebrate, as the haul of quick cash was better than expected last month. November brings with it Black Friday at the end, which is when a lot of money gets spent. The retail industry has been hurting for payday cash throughout the recession.
November nets retail industry a lot of quick cash
Holidays bring with them tradition. Thanksgiving, in particular, has certain traditions like pumpkin pie and the Thanksgiving Classic series of football games, but the day after Thanksgiving, or Black Friday, is a huge shopping day. Many people spend a lot of quick cash buy Christmas presents for themselves or others, and the retail year revolves around that time period. November 2010 retail sales, according to USA Today, were even better than expected, and a better pay day for an industry in a down economy is good news, indeed. Also, since fewer shoppers are using credit cards, that means fewer installment loans are needed to cover the tab in January.
Gains posted over last year
Analysts were predicting a gain in retail sales of 3 to 4 percent in November 2010 over November of 2009, but were closer to 6 percent. That means more instant cash is going into the economy, and also reveals that consumers are feeling more confident this year. Luxury retail stores Neiman Marcus and Saks posted sales gains over 5 percent more in November 2010 than in 2009, and Abercrombie and Fitch posted a 22 percent gain in November 2010 over November 2009. These brands experienced declining sales in 2009, but have begun rebounding. This is impressive, since some items in those stores would send the average person running for payday loans to cover the bill.
Good signs
This does not exactly mean that gray skies are clearing up and happy days are here again, but it means that recovery is certainly on track. The American economy is a consumer economy, and that is where some very positive signs are coming from.
