Jan 11, 2008

Weak Holiday Shopping Adds to Economic FearsBy Kimberly PalmerUSNews.com

With the recent reports of weak retail sales, here’s an argument for why December may not be as important as you think.

Were holiday sales weak this year?

For the most part, yes. According to TNS Retail Forward, the December same-store sales growth of about 50 retailers weakened to 0.2 percent, down from 3.2 percent growth in December 2006. The research group found that while the same percentage of people bought presents, shoppers spent $635 on average, down $75 from last year.

To some extent, the soft sales were predicted: Way back in November, the Consumer Federation of America and the Credit Union National Association said that 1 in 5 shoppers planned to spend less than in the previous year, largely because of concern over growing energy costs.

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