The news: US retail sales rose 0.6% MoM in November, more than expected, per the Commerce Department. On a YoY basis, sales were up 3.3%, outpacing inflation and showing that despite growing economic pressures, consumers are resilient.

Behind the numbers: Of the 13 categories tracked by the Commerce Department, 10 posted YoY growth, likely thanks to widespread promotional activity in the lead-up to and during the Cyber Five. Those discounts helped spur significant gains in discretionary sectors like apparel (up 7.5%) and sporting goods and hobby stores (up 7.8%). Nonstore retailers had a 7.2% jump in sales.

On the flip side, the three categories with declines—auto, furniture, and building supply retailers—are facing significant challenges. Auto sales are being hampered by affordability concerns, while the frozen housing market is hurting home-related retailers like Home Depot and RH.

Zoom out: Holiday spending trends across major economies were mixed this year, reflecting widespread consumer pessimism, a more promotional environment, and uncertainty.

• EU retail sales topped expectations in November, rising 0.2% MoM and 2.3% YoY, thanks to an uptick in non-food sales across its member states. However, growth was weaker in some countries (Germany, Italy) than others (Denmark, Spain), a sign of diverging trajectories amid global headwinds.
• UK retail sales rose by a tepid 1.3% YoY in December, according to the British Retail Consortium, as consumers held out for deeper discounts and prioritized essentials over discretionary purchases.
• Singles Day growth in China slowed this year despite a longer-than-usual sales period as the country’s economic challenges dampen consumers’ desire to spend.

Implications for retailers: Economic uncertainty is driving consumers in many economies to think more critically about how they spend. In this volatile environment, retailers need to make their value proposition clear to shoppers, such as by highlighting low prices, product quality, or convenient fulfillment options.

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