Last-Minute Buying Surge Puts a Holiday Glow on Retail Sales

In one of the first concrete signs that U.S. retailers got a boost during the holiday season, sales surged last week as shoppers snapped up toys and last-minute gifts at discount chains and marked-down apparel at department and specialty stores.

Sales at stores open at least a year rose 5.5% for the week ended Saturday from a year earlier, according to Bank of Tokyo-Mitsubishi Ltd., which tracks more than 80 U.S. retailers. That’s the biggest weekly increase since Nov. 14.

Last week’s surge means the November-to-December season will likely meet forecasts for a 4.5% to 5% sales increase, said Bank of Tokyo. Inflation under 2%, unemployment rates near 30-year lows, cheap oil and interest rate cuts are giving consumers extra cash for everything from big-ticket items, such as computers, to inexpensive home decorations.

“The consumer was upbeat, credit was available, jobs were plentiful and the spending occurred--albeit late,” said analyst Michael Niemira at Bank of Tokyo.

Tuesday’s report gave a boost to retail shares. Standard and Poor’s index of specialty clothing retailers, for instance, gained 7.9%, the largest increase among industry groups.

Saturday, Dec. 19, was the biggest shopping day of the year, said First Data Corp.’s TeleCheck, as consumers shopped later in the season. Holiday sales rose 2.5% through Christmas Eve, rebounding from a rise of less than 1% a week earlier, said TeleCheck.

Sales got a further boost from online retailers, which said the season surpassed expectations.