Holiday sales down for 3rd week

[Omaha Steve]

Source: AP-Excite

By ANNE D'INNOCENZIO

NEW YORK (AP) - After a strong start to the holiday shopping season, sales at stores have fallen for the third consecutive week as Americans continue to hold back on spending during what is traditionally the busiest buying period of the year.

Sales at U.S. stores dropped 3.1 percent to $42.7 billion for the week that ended on Sunday compared with the same week last year, according to ShopperTrak, which tracks data at 40,000 locations. That follows a decline of 2.9 percent and 0.8 percent during the first and second weeks of the month, respectively.

The numbers, which don't include online sales, are another challenge in what has largely been a disappointing holiday shopping season for stores. The two-month period that begins on Nov. 1 is important for retailers because they can make up to 40 percent of their annual sales during that time.

Retailers started the season cautiously optimistic. But after a strong start through most of November - ShopperTrak said sales were up 3.4 percent for the month - retailers have found it increasingly hard to attract shoppers into stores despite big discounts and expanded hours during the final days.

FULL story at link.


Read more: http://apnews.excite.com/article/20131223/DAASC4500.html

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In this Nov. 29, 2013, file photo, Best Buy employee Christopher Gervais, right, rings up a 32-inch LED TV in Dunwoody, Ga. Sales at U.S. stores dropped 3.1 percent to $42.7 billion for the week that ended on Sunday, Dec. 22, 2013, compared with the same week last year, according to ShopperTrak, which tracks data at 40,000 locations. (AP Photo/David Tulis, File)

[OKNancy]

1. You would never guess it where I live

The past two weeks have been nuts. You can't get anywhere without a traffic jam.
The stores are packed.

[Warpy]

2. When people in that 25-34 demographic, the big holiday spending years,

have been chopped off at the knees by unemployment, underemployment, and crippling student loan debt, you've effectively cut your own throats as well, corporate America.

You got what you wanted in terms of starvation wages. Now enjoy rotten sales, as well.

[cstanleytech]

7. Agreed, they inflicted this upon themselves. nt

[greymattermom]

19. that's both of my daughters

One never buys anything but food, gas, insurance, etc. I buy all of her clothes and other extras for her, and not many. She's 30 and has a master's degree. The other one buys things occasionally, but only from Goodwill. She's 27 and has a bachelor's degree in business. Both have jobs, but their jobs are part time or temporary. They have learned this frugal behavior over the years and are unlikely to ever unlearn it, just like folks who grew up during the Great Depression.

[Marrah_G]

3. I have done zero shopping this year.

No money to spend. ~shrug~

At some point there will be enough people in my position and thing will be forced to change.

[LovingA2andMI]

4. This is the historical trend...

Or marketing lines put out by the National Retail Federation....

December 26, 2012---

"The 2012 holiday season may have been the worst for retailers since the 2008 financial crisis, with sales growth far below expectations, forcing many to offer massive post-Christmas discounts in hopes of shedding excess inventory.

While chains like Wal-Mart Stores Inc and Gap Inc are thought to have done well, analysts expect much less from the likes of book seller Barnes & Noble Inc and department store chain J. C. Penney Co Inc.

Shares of retailers dropped sharply on Wednesday, helping drag broader indexes lower, as investors realized they were likely to be disappointed when companies start to report results in a few weeks' time."

http://www.reuters.com/article/2012/12/26/us-usa-retail-holiday-idUSBRE8BL03G20121226

December 23, 2011-

"Holiday retail sales appear on track to be somewhere between ho-ho-ho and ho-hum, raising the prospect that the economic expansion is still struggling to reach top form.

Some stores, including J. Crew and Bloomingdale's, were offering after-Christmas discounts of 75% or more, which were more reminiscent of the recession than a recovery.

Early and late in the season, shoppers seemed to ignore many of the lingering economic warning signs and spent like it was 2007 again. Yet, all that spending doesn't equal a blockbuster holiday season, some retail analysts say."

http://usatoday30.usatoday.com/money/industries/retail/story/2011-12-23/retail-holiday-sales/52196132/1

December 23, 2010---

"A blizzard in the U.S. Northeast this weekend postponed about $1 billion in holiday retail sales by keeping shoppers out of stores in the days after Christmas, research firm ShopperTrak said on Wednesday.

The snowstorm shut roads and canceled flights in New York City and created havoc across the Northeast, where shopper traffic was 11.2 percent below ShopperTrak's expectations for Sunday December 26 and off 13.9 percent on Monday December 27.

The firm said sales for the entire November and December holiday period are on track to be up 4 percent, helped by strong sales in November and December 23, a particularly heavy day for shopping before Christmas."

http://www.reuters.com/article/2010/12/29/us-usa-retail-idUSTRE6BQ22120101229

In January, this happens:

January 2012---

"Holiday shoppers hit the stores this year and spent an estimated $496.1 billion, making this holiday season above average for retailers.

The National Retail Federation reports that although consumer confidence is shaky when it comes to the economy, people responded to the sales and deals offered by stores throughout the holiday shopping season.

“We originally forecasted 2.8 percent growth over last holiday season and, in early December, when we released our November retail sales, it looked as if consumers had sustained some spending power that we hadn’t really expected to see,” said Kathy Grannis, a spokeswoman for the federation."

http://www.mlive.com/news/flint/index.ssf/2012/01/2011_holiday_season_results_in.html

So everything will be fine. It's just retail propaganda. Worked in the industry too many years to count.

[gvstn]

20. Thanks for the post.

I had a vague idea that this was common sort of statistic put out each year. Then in January sales are usually "better than expected".
Your articles confirmed that scenario nicely.

[LovingA2andMI]

22. No problem!

[hobbit709]

5. No money-no sales. Who couldn't see that one coming?

Contrary to what Wall St thinks, there's no money at the bottom level.

[cstanleytech]

6. So let me get this right. Alot of these retailers have been cutting hours

for most of their part timers for months if not years and alot of them also barely pay above minimum wage to said part timers and they are wondering why sales are weak?

[Mr.Bill]

8. But aren't internet sales up every year?

It would only make sense that as internet sales climb, bricks and mortar retail sales will go down.

[Demeter]

9. For the Last Time: THERE IS NO RECOVERY!

[KoKo]

10. The Luxury Goods Buyer "1%" is spending very well...I've cut back to

a quarter of what I used to do for Christmas. Frankly...I put up a Charlie Brown Tree this year and am happy with it.

I think there are many in the "former Middle Class" who are not wanting to do the "gauntlett" of "You can get an extra 20% off if you sign up for our store card and you can just pay it off if you want to when you get your first bill" and "Can I have your Zip Code, Address and Phone Number and your E-Mail? This just to purchase a sweater.

So .......there's that and I can imagine the poorest amongst us...have little as the Wall Street Debauchery continues!

[RBInMaine]

17. Things are better COMPARATIVELY, but still a long way to go. It was a DEEP recession. Things are due

to continue to improve. But trickle down must be reversed.

[Skittles]

11. more and more people are realizing what a waste of money it is

[quadrature]

12. saving up to pay for Obamacare

the money has to come from somewhere.

[iamthebandfanman]

13. kinda null

if it doesn't include internet sales.. isn't it ?

[UpInArms]

14. I'll just wait for Tiffany and Co to report their december sales

[gadjitfreek]

15. Well, if you don't pay people a living wage

Then they won't be able to afford the crap you peddle. Besides, most of what is being put on sale is the garbage they couldn't sell the rest of the year. Let them choke on their own expectation of greed.

[JCMach1]

16. Seriously? seems like peeps waiting until the last minute judging from today...

[RBInMaine]

18. Overall, sales will be UP, just not WAY up. Not bad, but not a boom YET.

[Sunlei]

21. "The numbers, which don't include online sales" everyone buys online,bet online sets another record

[SoapBox]

23. Our area is nutso busy.

I was in a Bed, Bath and Beyond as well as Target today...busy! Both stores had all the registers open...never seen that at either store.

Which makes me assume that sales are high/low by regions.

[Tarheel_Dem]

24. Like many people, i don't brick-n-mortar shop. I only shop online these days. nt