Post by blueneck on Dec 31, 2007 18:35:47 GMT -6
From the Chicago Tribune
Despite late rush, sales weak
Holiday retail rose only 3.6 percent over 2006.
By Wailin Wong
of the Chicago Tribune
CHICAGO — Holiday shoppers staged a last-minute surge this year, rushing to both stores and Web sites in the final days before Christmas, but their late burst of buying wasn't enough to salvage the retail industry's lackluster season.
Sales from the day after Thanksgiving, or Black Friday, to Dec. 24 showed tepid growth from a year earlier, coming in at the lower end of analysts' forecasts as high gasoline prices and concerns over the economy prompted many consumers to scale back their spending. According to data released Wednesday by MasterCard Spending Pulse, holiday sales rose a seasonally adjusted 3.6 percent from 2006. But stripping out spending on gasoline, sales were just 2.4 percent higher. The 3.6 percent increase was the smallest year-on-year gain in four years.
Shoppers turned out in force for Black Friday, when sales posted double-digit growth on the year, said Michael McNamara, vice president of research and analysis for MasterCard Advisors, which compiles the data. The figures do not represent MasterCard's performance.
Shopping slumped after Black Friday and recovered somewhat during the final stretch. Data from Chicago-based ShopperTrak RCT Corp. showed that sales during the last weekend — Friday-Sunday — jumped 18.7 percent from a year earlier.
Industry experts say stores benefited in part from the virtual three-day weekend that preceded this year's Christmas, which landed on a Tuesday, but those three days of heightened activity were not enough to regain the momentum from the start of the season.
“Usually, we see a bit of a lull between Black Friday and the last 10 days,” McNamara said. “This year, the lull was a little bit more pronounced than we expected.”
For online retailers, sales for the five days ending Friday were 25 percent higher than last year, according to comScore Inc.
Retailers are now focusing on the last week of the year, when shoppers descend on winter clearance sales and redeem gift cards. The National Retail Federation expects consumers to spend $26.3 billion on gift cards this season, up from $24.8 billion in 2006. With the growth of gift cards, retailers are increasingly eager to clear out their winter inventory and get spring merchandise on their shelves sooner.
A survey released Wednesday by the International Council of Shopping Centers and UBS Securities said 18 percent of consumers planned to go shopping on the day after Christmas.
At Abercrombie & Fitch at Water Tower Place in Chicago, a shirtless young employee was stationed by the entrance, telling customers to check out the retailer's new perfume. The store had also introduced flip-flops for $19.50 and smocklike tank tops with crochet trim for $39.50, while shelves of T-shirts marked down to $19.90 were fully picked over by the early afternoon.
Discounts were widespread both in stores and online. Amazon.com was cutting prices in categories such as toys and watches by 70 percent, and in consumer electronics like digital music players and portable GPS devices by 50 percent.
Retailers were also making efforts to sustain traffic into 2008. The Limited handed out coupons offering $15 off purchases between Jan. 14 and Feb. 3, with the discount rising to $30 on purchases of $100 or more.
Liz McGarry made an early stop at Saks Fifth Avenue, where she got 50 percent off the lowest ticketed price on items before noon. She also bought all her Christmas cards for next year at Crane's.
“I can't carry any more bags,” said McGarry, 50, who had finished all her holiday shopping by the second week of December and was now buying for herself. “I have to go home - this is a sign.”
Despite late rush, sales weak
Holiday retail rose only 3.6 percent over 2006.
By Wailin Wong
of the Chicago Tribune
CHICAGO — Holiday shoppers staged a last-minute surge this year, rushing to both stores and Web sites in the final days before Christmas, but their late burst of buying wasn't enough to salvage the retail industry's lackluster season.
Sales from the day after Thanksgiving, or Black Friday, to Dec. 24 showed tepid growth from a year earlier, coming in at the lower end of analysts' forecasts as high gasoline prices and concerns over the economy prompted many consumers to scale back their spending. According to data released Wednesday by MasterCard Spending Pulse, holiday sales rose a seasonally adjusted 3.6 percent from 2006. But stripping out spending on gasoline, sales were just 2.4 percent higher. The 3.6 percent increase was the smallest year-on-year gain in four years.
Shoppers turned out in force for Black Friday, when sales posted double-digit growth on the year, said Michael McNamara, vice president of research and analysis for MasterCard Advisors, which compiles the data. The figures do not represent MasterCard's performance.
Shopping slumped after Black Friday and recovered somewhat during the final stretch. Data from Chicago-based ShopperTrak RCT Corp. showed that sales during the last weekend — Friday-Sunday — jumped 18.7 percent from a year earlier.
Industry experts say stores benefited in part from the virtual three-day weekend that preceded this year's Christmas, which landed on a Tuesday, but those three days of heightened activity were not enough to regain the momentum from the start of the season.
“Usually, we see a bit of a lull between Black Friday and the last 10 days,” McNamara said. “This year, the lull was a little bit more pronounced than we expected.”
For online retailers, sales for the five days ending Friday were 25 percent higher than last year, according to comScore Inc.
Retailers are now focusing on the last week of the year, when shoppers descend on winter clearance sales and redeem gift cards. The National Retail Federation expects consumers to spend $26.3 billion on gift cards this season, up from $24.8 billion in 2006. With the growth of gift cards, retailers are increasingly eager to clear out their winter inventory and get spring merchandise on their shelves sooner.
A survey released Wednesday by the International Council of Shopping Centers and UBS Securities said 18 percent of consumers planned to go shopping on the day after Christmas.
At Abercrombie & Fitch at Water Tower Place in Chicago, a shirtless young employee was stationed by the entrance, telling customers to check out the retailer's new perfume. The store had also introduced flip-flops for $19.50 and smocklike tank tops with crochet trim for $39.50, while shelves of T-shirts marked down to $19.90 were fully picked over by the early afternoon.
Discounts were widespread both in stores and online. Amazon.com was cutting prices in categories such as toys and watches by 70 percent, and in consumer electronics like digital music players and portable GPS devices by 50 percent.
Retailers were also making efforts to sustain traffic into 2008. The Limited handed out coupons offering $15 off purchases between Jan. 14 and Feb. 3, with the discount rising to $30 on purchases of $100 or more.
Liz McGarry made an early stop at Saks Fifth Avenue, where she got 50 percent off the lowest ticketed price on items before noon. She also bought all her Christmas cards for next year at Crane's.
“I can't carry any more bags,” said McGarry, 50, who had finished all her holiday shopping by the second week of December and was now buying for herself. “I have to go home - this is a sign.”