This article is from the Counselor...
It was a happy holiday for retailers, which experienced a 3.6% increase in sales during the holiday shopping season according to MasterCard Advisors' SpendingPulse. While the figure remains well below the gains posted in 2007, it does represent a noticeable uptick compared to the 2.3% decline in holiday sales one year ago. The National Retail Federation had originally predicted that retail sales this holiday season would drop 1%. "Last year the economy and consumer spending were in free fall. This year we're talking about an environment that has stabilized, that has seen a leveling off," said Kamalesh Rao, director of economic research at Spending Pulse.
Online spending was the star of the season, showing a 15.5% increase in sales (in part due to a major snowstorm on the east coast the weekend before Christmas). Consumer electronics, footwear and jewelry all posted impressive gains between 5% and 6%. Luxury items (.8% increase) and apparel (.4% decrease) both struggled, though men's apparel did post gains of almost 4%. The most discouraging sign for retailers is poor gift card redemption rates. A sampling of malls by Taubman Centers revealed a rate of 10%, compared to a normal rate of 30%-40% in good years. Retailers count on gift card sales to generate revenue the week after Christmas and throughout the month of January.
The final data for the holiday shopping season won't be revealed until January 7. Heading into 2010, retail shopping experts are predicting that discount stores especially will continue to thrive. "We're still looking at a challenging year, but any retailer offering more for less is going to be in a better position," Phil Rist, a consumer analyst for BIGresearch, said.
No comments:
Post a Comment