Retailers Face an Ominous Holiday Sign
Sales of women’s clothing, a traditional pillar of the holiday shopping season, are unusually bleak so far this year, according to a major credit card company, an ominous sign for the retail industry.
From high-end dresses to bargain coats, spending on women’s apparel dropped nearly 6 percent during the first half of the Christmas season, compared with the same period last year, according to MasterCard Advisors, a division of the credit card company.
Analysts blamed a rough economy, which has discouraged women — and mothers, in particular — from splurging on clothing for themselves and a lack of compelling fashions this winter.
The drop-off, which the credit card company described Sunday as “surprising,” bodes poorly for chains like Chico’s FAS and Ann Taylor, which specialize in women’s clothing, and could result in steeper-than-expected discounts on their merchandise in the final week before Christmas.
The slowdown is worrisome because women make the vast majority of purchases in retailing, and their spending is a closely watched barometer of the industry’s health.
In contrast, sales of men’s clothing rose 4.5 percent during the first 20 days of the season, MasterCard Advisors said.
The credit card company issued on Sunday a midseason snapshot of the crucial holiday season, compiled between Nov. 23, known as Black Friday, and Dec. 12. The numbers in its SpendingPulse report are based on the purchases of its more than 300 million American cardholders and estimates of broader consumer spending through cash and checks.
