No holiday cheer for US retailers as sales tumble
Washington - US retailers were experiencing their worst holiday sales season in four decades as concerns over the widening recession and record-high job losses kept shoppers away.
Several stores opened as early as 5:30 am Friday, hoping to lure consumers with steep discounts of 50 per cent to 70 per cent. JC Penney Co was offering 70 per cent off on gold jewellery.
But even heavy discounts - such as those at Macy's Inc and AnnTaylor Stores Inc - failed to prevent the slide, according to data from SpendingPulse, a MasterCard Advisors' service that has been tracking consumer spending since 2002.
Retailers rely on the holiday season to boost their total annual sales. But a quick recovery was unlikely as retail sales were down 5 per cent to 7 per cent this month.
According to estimates available Friday, consumers spent 20 per cent less on clothing, electronics and jewellery in November and December, despite discounts.
According to SpendingPulse, from November 1 to December 24, women's clothing sales dropped 23 per cent, while men's slid 14 per cent. The worst-affected were sales of luxury goods, which plunged 35 per cent. Electronics and appliance sales were down 27 per cent.
"It's been ... much more difficult than anyone expected," Gilbert Harrison, CEO of retail advisory firm Financo Inc in West Palm Beach, Florida, told Bloomberg TV. Consumers "will spend on necessities, they'll spend on what they need, but they're being very particular in what they'll buy."
The only good news was from Amazon. com Inc, which said this was its "best ever" holiday season, but didn't divulge specific profits. (dpa)