What: While the month of November 23 was rather good for US retail, department stores did not get a piece of the pie.

Why it is important: Calls for US department stores reforms are growing each day, as shown by the Macy’s buyout proposal issued earlier this week.

The November sales report from the U.S. Census Bureau indicates a mixed start to the holiday season in the retail sector. While overall consumer spending showed more vigor than expected, department stores experienced a decline, with sales dropping 5.2% compared to the previous year. This downturn highlights ongoing challenges in the sector, exemplified by a reported low-ball buyout offer for Macy's Inc. In contrast, apparel and accessories specialty stores saw a modest 1.3% increase in sales, though this was still behind the broader market trend.

Significant growth was observed in other retail segments, with electronics and appliance stores leading the way with a 12% increase. Additionally, food service and drinking places, non-store retailers, and health and personal care stores all saw notable sales gains.

The overall market sales slightly rose by 0.3% from October, surpassing economists' expectations of a 0.2% decline. This suggests that heavy promotional strategies employed by stores to attract holiday shoppers were effective. Despite a solid November, there's no guarantee for a successful overall Christmas retail season, but it's a more favorable outcome than the alternative.

The industry, facing a traditional December slowdown, is hopeful for a strong finish, with projections of a 2 to 4 percent holiday gain, aligning closely with the current inflation rate of 3.1%. The National Retail Federation anticipates a surge of nearly 142 million consumers shopping on December 23, hoping to capitalize on the last Saturday before Christmas.

US: Department stores miss out on solid holiday start