The report on the holiday retail season showed bleak results and made people wonder about the economy’s recovery. Local and national retailers are still hopeful that the next couple of days of post-Christmas shopping could bring an increase in consumer spending.
The final week of the year represents around 15 percent of December retail sales. According to a report, sales of electronics, clothing, home goods, and jewelry in the two months before Christmas were up 0.7 percent compared to 2011. That was below the 3 to 4 percent growth forecast made by analysts. It was the weakest year-to-year performance since 2008, when the recession kicked in.
US stocks dropped Wednesday, which is the first day of trading after the Christmas holiday. Major retailers in the United States, including Abercrombie & Fitch, Urban Outfitters, Sears Holdings, Nike, Gap, and Limited Brands, were down. Coach, a handbag maker, dropped $3.13 to $54.40. It dropped more than 5 percent of its value, which was more than any other company in the S&P 500.
ShopperTrak, which is set to report on the pre-Christmas week Thursday, said it showed a more positive view of the market. It said that it stand by its revised estimate for the season with a 2.5 percent sales increase over 2011.
The Northlake Mall in Charlotte is estimating year-to-year growth between 2 and 4 percent. Traffic is down but the sales are up. Consumers look for good sales but they might have to come back later for bigger discounts.
Analysts said that Superstorm Sandy and the fiscal cliff lessened the Christmas spirit. They said that the mass shooting in Connecticut also contributed to the erosion of enthusiasm in the season.
