IBJNews

Holiday sales at stores down for third consecutive week

Back to TopCommentsE-mailPrintBookmark and Share

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—stores have found it increasingly hard to attract shoppers into stores despite big discounts and expanded hours during the final days.

"It's been a mediocre December," said Bill Martin, co-founder of ShopperTrak.

Karen McDonald, a spokeswoman at Taubman Centers, which owns or operates 28 malls, estimated that business for the week that ended Sunday unchanged to up mid-single digit percentage compared with a year ago.

"I felt for sure it was going to be gangbusters. But it was just OK," McDonald said.

At the Garden State Plaza Mall in Paramus, N.J., on Saturday, Abercrombie & Fitch, AnnTaylor and Express had 50 percent sales, while Aeropostale was discounting its entire assortment up to 70 percent. Still, shoppers were cautious.

Barbara Jackson, 45, was one of them. She said she's capping her holiday budget at $1,500—half of what she spent last year. That's because Jackson, an aide to the elderly, is earning less than last year.

"I am more budget conscious," Jackson said.

Shoppertrak estimates that holiday sales at stores so far are up 2 percent to $218.4 billion compared with the same period last year. That's below the 2.4 percent forecast for the two-month period, but the company is standing by that estimate with a few days left before Christmas and a little over a week before the season end.

The National Retail Federation, the nation's largest retail group, also said it's still standing by its forecast that sales in stores and online combined will be up 3.9 percent to $602.1 billion.

But even online sales, which had been a bright spot for much of the season, aren't growing at the expected pace.

Online spending from home and work desktop computers in the U.S. from Nov. 1 through Dec. 15 was up 9 percent from the same period last year to $37.8 billion, according to the most available data from comScore.

That's below the 14-percent growth the Internet research firm is forecasting for the season. But comScore still expects online sales to grow at the pace for the season, but the category only accounts for about 11 percent of spending in the three months that include the holiday shopping season.

Final sales figures for the holiday shopping season are expected in January.
 

ADVERTISEMENT

  • the color is green
    You know it still takes money to buy things and at the rate we are doing away with good paying jobs there is less and less of it to go around. Hence sales are down and will continue in that direction.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I am also a "vet" of several Cirque shows and this one left me flat. It didn't have the amount of acrobatic stunts as the others that I have seen. I am still glad that I went to it and look forward to the next one but I put Varekai as my least favorite.

  2. Looking at the two companies - in spite of their relative size to one another -- Ricker's image is (by all accounts) pretty solid and reputable. Their locations are clean, employees are friendly and the products they offer are reasonably priced. By contrast, BP locations are all over the place and their reputation is poor, especially when you consider this is the same "company" whose disastrous oil spill and their response was nothing short of irresponsible should tell you a lot. The fact you also have people who are experienced in franchising saying their system/strategy is flawed is a good indication that another "spill" has occurred and it's the AM-PM/Ricker's customers/company that are having to deal with it.

  3. Daniel Lilly - Glad to hear about your points and miles. Enjoy Wisconsin and Illinois. You don't care one whit about financial discipline, which is why you will blast the "GOP". Classic liberalism.

  4. Isn't the real reason the terrain? The planners under-estimated the undulating terrain, sink holes, karst features, etc. This portion of the route was flawed from the beginning.

  5. You thought no Indy was bad, how's no fans working out for you? THe IRl No direct competition and still no fans. Hey George Family, spend another billion dollars, that will fix it.

ADVERTISEMENT