Legal News

US Shoppers Make December Even Colder For Retailers As Report Shows Worst Holiday Sales Since 2008
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

The US holiday retails sales were the worse in the last 4 years. Retailers reported that the sales were lowest since 2008, when the country was under severe recession. Economists say that inclement weather during the holiday season and consumers insecurity about the economy contributed to the decline.

MasterCard Advisors SpendingPulse published a report that monitors how customers spend on well-liked holiday products said that sales in the two months prior to Christmas increased by 0.7 percent, as compared to 2011. However, it was well below the anticipated 3 to 4 percent.

This year shoppers were disinclined to shop, their enthusiasm dampened by Hurricane Sandy, the aftermath of the presidential election and feelings of pain and guilt about the senseless Sandy Hook massacre. Moreover, the continued budget stalemate at Capitol Hill is creating a lot of uncertainty amongst the shoppers and they would rather save that spend.


The persistent stalemate regarding the “fiscal cliff” and its ominous consequences that analysts and economists are forecasting has further instilled fear and apprehension in the minds of the people, who are becoming even more fiscally-conscious as with each passing day the 31 December deadline looms near.

Analysts say that if the American’s unwillingness to spend continues, it would further curtail economic growth and this would reflect in the growth numbers for the coming year.

Marshal Cohen, chief research analyst at the market research firm NPD Inc. said that even heavy discounts were not enough to entice shoppers to the stores. He said that a number of reasons combined to ensure that customers did not go beyond what they had already planned on buying.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

Holiday sales are a vital barometer in measuring the country’s economic health. Most retailers see more than one-third of their total annual sales happen during the last two months of the year, with the other 10 months accounting for less than 60 percent of their sales. If these two months, November and December, do not aggregate expected sales, the retailer has to sell at heavy discounts, which eats into his profits and probably puts him into the red.

Almost three-fourths of all economic activity is fuelled by consumer spending and the two months buying data, accessed by SpendingPulse sheds vital light on data that is a crucial lifeline not just for the sellers, but also for their suppliers, manufacturers and all other links in the supply chain.

The SpendingPulse data information looks into shoppers buying of home appliances, garments, furniture and luxury goods from October 28th until the day before Christmas. This includes purchases made through cash payments, checks and credit and debit cards.

Even though the numbers are nothing to bring cheer and warmth to the wintry December, the last week of this moth could add substantially to the sales. As shoppers seek to lessen unsold stock, they offer tempting bargains, which can increase sales substantially and give a slightly better look to the dismal Tuesday statistics.

Last-minute buyers said that there were surprised to find that the discount offers now, were even better than what was being offered during Black Friday and Thanksgiving.

Poorer sales this year will ensure that the retailers begin 2013 on a cynical guarded note. They will place fewer orders and manufacturers will produce less as wholesalers will buy less. The lesser the goods available in the market, their prices could get pushed up. It’s a vicious cycle that does not portend well for the US economy.



Staff Attorney- Public Benefits


Greater Bakersfield Legal Assistance, Inc.  (GBLA), a non-profit law firm that provides free ci...

Apply now

Staff Attorney- Community Homeless Law Center


Greater Bakersfield Legal Assistance, Inc.  (GBLA), a non-profit law firm that provides free ci...

Apply now

Patent Attorney/Agent

USA-FL-Plantation Acres

Full-service intellectual property law firm in a great location near Miami and Fort Lauderdale is ac...

Apply now

Associate Attorney

USA-TX-San Antonio

The Amsberry Law Firm is a boutique law firm focused on representation in the areas of...

Apply now




Search Now

Corporate/Transactional Attorney

USA-IA-Des Moines

Des Moines office of a BCG Attorney Search Top Ranked Law Firm seeks corporate/transactional attorne...

Apply Now

Corporate Attorney / Counsel

USA-NY-New York City

New York City office of a BCG Attorney Search Top Ranked Law Firm seeks corporate attorney with 5+ y...

Apply Now

Housing Finance Associate Attorney


Minneapolis office of a BCG Attorney Search Top Ranked Law Firm seeks a housing finance associate at...

Apply Now

Most Popular


To Top