The holiday season is now over, and retailers are left to count the receipts as the market eagerly awaits the results. Overall, the numbers are mixed, and it is difficult to get a clear picture of the fourth quarter performance. National surveys are largely painting a dim picture, but post holiday shopping could ultimately push the numbers up and appease financial markets as we head into 2013.
According to a Master Card (NYSE: MA) Advisors SpendingPulse report, sales for the two months before Christmas increased only 0.7 percent nationally compared with last year, but that number was three to four percent lower than expected. Some accounts blame the poor turnout on Superstorm Sandy, which battered the Northeast and Mid-Atlantic states, which account for 24 percent of U.S. retail sales. Other sources cite economic uncertainty on the part of consumers due to “fiscal cliff” fears being compounded by the media.
The final week of December is said to account for as much as 15 percent of December sales, according to many sources, leaving local retailers hoping for the best. Online sales for all retailers for Black Friday as well as Cyber Monday this year were up nearly 24 percent over last year, with a higher share of online purchases being made from mobile phones. But, brick and mortar sales are still the staple of retail performance.
According to a TIME.com Business article, so-called cyber Monday sales this year was the biggest in history, with nearly $1.5 billion in sales compared to $1.25 billion last year, due in part to the convenience of purchasing online by mobile phone, tablet and computer. The same article points out, however, that online sales still only amount to roughly seven percent of all sales, meaning in-store purchases still make up over 90 percent of overall retail business. Another factor that could be delaying Christmas sales this year, according to many, is the increased use of gift cards, which have not all been redeemed yet. According to Kroger store manager Gordon Bass, final numbers for Kroger’s Christmas sales won’t be available until next week. “We were very busy this year and I know we sold a lot of gift cards,” Bass said, “but we won’t know the final Christmas sales numbers until early next week. “It’s been a big Christmas though, for sure.”
Investors will be eagerly awaiting the final verdict of the fourth quarter results – with fiscal cliff issues looming, this could prove to be a bright spot in an otherwise difficult environment.
