Retailers did somewhat better this holiday season, figures show
Even as shoppers struggled with a tough economy, many loosened their purse strings during the crucial holiday season, bringing some stability to the battered retail industry.
Sales figures released Wednesday by two firms that track retail spending indicated a better Christmas than in 2008, when a sharp consumer pullback led to the worst holiday season in decades.
Although retailers fared better, analysts said the results still fell short of the highs seen before the recession and noted that it was easy to beat 2008’s dismal performance. A close-up look at how specific retailers performed last month is expected today.
“Sales were not necessarily robust, but the retail environment was a lot healthier than it was a year ago,” said Michael McNamara, vice president for research and analysis at SpendingPulse, an information service of MasterCard Advisors. “Where we are now is in serious but stable condition, whereas a year ago it was in critical condition.”
Helped by a rush of last-minute Christmas shoppers, sales rose in several major categories in December, according to SpendingPulse, which estimates sales for all forms of payment, including cash, checks and credit cards.
Spurred by bad weather in many parts of the country and an increasing comfort with shopping online, many consumers flocked to their computers last month. That pushed e-commerce sales up 17.7% compared with December 2008, SpendingPulse said.
Sales of electronics -- including televisions, computers and digital cameras -- rose 7.3% year over year, the sector’s fourth consecutive monthly increase, and footwear sales increased 6.2%.
Jewelry sales increased 6.9% over December 2008, although the sector continued to be a mixed bag, with high- and lower-end jewelry sellers faring better than mid-tier, mall-based stores, McNamara said. Excluding jewelry, the luxury sector posted a 5.5% increase.
Department stores and specialty apparel sellers -- two sectors that have struggled for months -- were weak spots this holiday season, with December sales down 2.3% and 1.8%, respectively.
Total dollar sales figures were not provided by SpendingPulse. Although the information service also did not release an industrywide sales number for the entire season, McNamara estimated that November-December retail sales rose 1.7% over the same period a year earlier.
For the second year in a row, the holidays was hampered by worries about job security and other economic problems. For many consumers, that meant sharply curbing spending.
“We just have a lot less money to spread around,” said Santa Monica resident Sean McDaniel, 61, whose family spent about 20% less on Christmas gifts. “It was the first time in a long time where we sat down and talked about what money we were going to spend and how we were going to spend it.”
In a separate report released Wednesday, research firm ComScore said U.S. online retail spending during the November-December period totaled $29.1 billion, a 4% increase over the same period a year earlier. Online sales account for less than 10% of overall retail spending.
Key shopping periods -- including Black Friday, Cyber Monday and the weekend before Christmas -- all outperformed their year-earlier counterparts. Tuesday, Dec. 15, ranked as the heaviest online spending day of the year, and of all time, with sales totaling $913 million, ComScore said.
“It’s possible that this better-than-expected end-of-year performance is a harbinger of renewed vigor and optimism for 2010,” ComScore Chairman Gian Fulgoni said in a statement. “At the same time, we need to remember that consumers’ spending power remains constrained by high unemployment levels, substantial debt and a newfound desire to save.”
A clearer picture of the holiday season is expected today, when major chain stores including Macy’s Inc., Gap Inc. and Target Corp. report December sales results. Analysts surveyed by Thomson Reuters predicted that the retail industry would see sales increase 2% over December 2008.
