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)
Loading...

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.

  
What
Where


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.



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

General Municipal Law Attorney with land use experience

USA-CA-Oakland

Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Immigration Attorney with portable business

USA-VA-McLean

McLean office is seeking an immigration attorney with $500,000+ in portable business.

Apply Now

Litigation Attorney with 5-7 years of civil tort experience

USA-TX-Dallas

Dallas office of our client seeks litigation attorney with 5-7 years of civil tort experience, inclu...

Apply Now

RELEVANT JOBS

Experienced Insurance Defense Attorney Needed

USA-NY-Bohemia

Insurance Defense firm (with 15 attorneys in Suffolk and Mineola location), seeks attorneys with 5+ ...

Apply now

Corporate / Commercial Attorney | Lebanon, NH

USA-NH-Lebanon

Downs Rachlin Martin PLLC seeks an experienced corporate / commercial attorney to join its Lebanon o...

Apply now

Business Law Junior Associate | Burlington, VT

USA-VT-Burlington

Downs Rachlin Martin seeks associate attorney with 1-3 years of experience to join its Commercial an...

Apply now

Business Law Associate | Burlington

USA-VT-Burlington

Downs Rachlin Martin is seeking an attorney with 4 to 8 years of experience to join its very busy pr...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top