NEW YORK — After a rocky start to the holiday shopping season, U.S. retailers benefited from cheaper gas prices and an improving job market in the weeks leading up to Christmas, raising optimism that sales reached a three-year high.
Customer Growth Partners President Craig Johnson, who tracks the retail industry, now expects holiday sales to grow about 3.9 percent, a faster clip than he had previously projected as his “base case.”
The biggest payroll gains since 1999 and the lowest gasoline prices in five years are prompting consumers to spend more liberally. The decline in gas prices, which are down 22 percent this month, could free up $3 billion in holiday spending, Johnson said. That may help retailers recover from a lackluster kickoff to the season.
Sales between Thanksgiving and Christmas rose 5.5 percent, according to MasterCard Advisors, with jewelry and women’s clothing the strongest categories. Johnson’s research showed that this season was the best in years for both consumer electronics and toys, helped by products like Apple’s iPhone 6 and dolls from the Disney movie “Frozen.”