Dismal holiday may spur sales
Holiday spending was so anemic that even Wal-Mart didn't escape unscathed: It posted a smaller sales gain than Wall Street expected and cut its earnings outlook for the fourth quarter. Macy's, Gap and a slew of others reduced their forecasts as well, mainly because of the huge discounts stores have used to draw in customers.
The nationwide picture was bleak: Same-store sales were down 1.7 percent for December, with many chains reporting declines of 10 percent and more, according to an index released Thursday by the International Council of Shopping Centers and Goldman Sachs.
For November and December combined, the drop was 2.2 percent the weakest holiday shopping season since the index was started in 1969. For all of 2008, sales rose just 1 percent, the weakest in at least 38 years.
"The blanket that has covered the North American consumer that has kept them from spending is heavier than expected," said Dean Hillier, partner in the retail practice of consulting firm A.T. Kearney.
Among the many stores that reported steep sales declines were Sears Holdings Corp., which operates Kmart and Sears, as well as Abercrombie & Fitch, Gap Inc. and Saks.
Sales on new items for spring have already begun, fueling more concerns about the retail industry's health. A rash of store closings is expected as retailers navigate the deepening recession.
Disappointing sales of holiday gift cards mean stores probably won't see a big lift in business in January. Michael P. Niemira, chief economist at the ICSC, forecasts a 1 percent decline in same-store sales for the month.
Wal-Mart, the world's largest retailer, benefited last year as shoppers focused on necessities and switched to cheaper stores, but analysts say its disappointing December performance may signal that shoppers are pulling back even more. December sales were up 1.2 percent including fuel sales and rose 1.7 percent without. Wall Street was expecting 2.8 percent excluding fuel.
Wal-Mart said electronics sales were solid, clothing and jewelry sales were weak, and health and wellness items were the strongest.
Comments
- 'Dinosaur Odyssey' insight to life 4:35 p.m.
- PETA unhappy with Utah laws 4:33 p.m.
- Waste incinerator settlement OK'd 4:27 p.m.
- Gas line prompts Parowan evacuation 4:25 p.m.
- Canal co. shareholders OK merger 4:24 p.m.
- Crèche convention opens in SLC 4:02 p.m.
- Utes focus on game, not 'GameDay' 3:58 p.m.
- Duchesne developers charged 3:16 p.m.
- Hall closing in on victory milestone 3:15 p.m.
- Pentagon defusing roadside bombs 3:11 p.m.
- House passes health care bill
324 - SLC council OKs gay rights policies
310 - TCU showdown has big implications
195 - Senators want food tax restored
158 - Cougars crush hapless Cowboys
155 - Utah Jazz fall apart against Kings
131 - Will state consider gay rights law?
129 - TCU 4th in AP poll; U. 16th, Y. 22nd
119 - Letters: Strange breed in Utah
116 - S.L. vote pending on gay protections
110
Maybe someone out there can help me understand how raising the state...
Especially the button he missed for this DA photo. Looks like he never...
Utah is probably the only "elite" football program in the world that has only...
i hope hunter plays bigham so the line can RUN EM OVER!!!! they wont know...
Angela You are too modest, The CHURCH OWNS Utah, it's legislature, it's...
While conservatives whine, you are trying to help American's. What a...
South Summit wins this one easily. After losing the first game in Blanding...
How many BYU fans does it take to make a well-educated football comment?? ...
IF you all feel so strongly about helping those who can't afford an expensive...
Badgering = asking questions that a high-school senior should be able to answer.
Good grief, can things get any goofier with Obama? This moron stands up and...



You can be the first to comment on this story.