DALLAS, Jan 14, 2005/ FW/ --- The Grinch tried to steal Christmas, but Santa won! Combined, November and December brought holiday sales growth to 5.%, the strongest growth since 1999 and higher than last year's 5.1 percent increase, according to a report by the National Retail Federation (NRF).

From the same report, NRF says that December retail sales in the GAFS category (general merchandise stores, clothing and clothing accessories stores, furniture and home furnishings stores, electronics and appliances stores, and sporting goods, hobby, book and music stores) rose a whopping 6.45 over the previous year and increased 0.5 percent seasonally adjusted from November.

"Even after all of the hand-wringing by retail analysts, the holiday season ended on strong footing," said NRF Chief Economist Rosalind Wells in a statement.

"Post-holiday discounting and gift-card redemptions helped provide a last-minute surge in spending."

December retail sales released today by the U.S. Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) rose 1.2 percent seasonally adjusted from November and increased 9.3 percent unadjusted year-over-year.

Several retail sectors in December saw strong growth. Furniture and home furnishings stores saw positive gains, with sales up 2.2 percent seasonally adjusted from November and rising 7.2 percent over 2003.

Additionally, general merchandise stores, which include department stores, grew 0.7 percent from the prior month and 7.8 percent over the previous year. Sales at sporting goods stores rose 0.9 percent from November and a strong 4.2 percent over 2003.

Clothing and clothing accessories stores dropped 0.6 percent from November but rose an impressive 5.0 percent over the previous year.

"Though we were projecting a solid holiday season, the final outcome was better than we thought it would be," said NRF President and CEO Tracy Mullin.

"The 2004 holiday season should serve as a reminder that retail analysts should never underestimate the power of the consumer."