Bloomberg has just released information confirming what many traders had dreaded "Cutbacks on clothing, electronics and jewelry led U.S. retail sales to drop as much as 4 percent this holiday season as consumers limited purchases to necessities, according to SpendingPulse data." Retailers are hoping that the after Christmas sales will help pull back the situation.
"Spending was the lowest since MasterCard Advisors started tracking data in 2002 to provide the SpendingPulse service, said Michael McNamara, vice president of research and analysis, in an interview yesterday. He estimates sales, excluding autos and gasoline, fell 2 percent to 4 percent from Nov. 1 to Dec. 24.
“Overall this has been one of the most challenging holiday seasons on record,” McNamara said.
Consumers facing a recession, tightening credit and the highest unemployment rate in 15 years shortened their gift lists and spent less. Retailers including Macy’s Inc. and AnnTaylor Stores Corp. responded by increasing markdowns, which stand to hurt profit margins in what may be the weakest holiday spending season in four decades. "
I'm for the consumer and I say if you have some spare cash left over make use of it now in the after Christmas sales there are going to be some mighty discounts especially on high ticket prices.
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