Retail
Data Shows Sales Decline in Lead-Up to Christmas
The Associated Press
12/30/08 - 11:18 AM EST
NEW YORK -- Continued economic woes and wintry weather crimped sales at the nation's stores ahead of Christmas, and post-holiday sales were weak as well, according to data released Tuesday by the International Council of Shopping Centers.
For the week ended Saturday, same-store sales declined 1.5% from the prior week. On a year-over-year basis, same-store sales fell 1.8%, according to the association's weekly index, which tracks sales of about 40 retailers.
Same-store sales are sales at stores opened at least a year and are considered a key indicator of a retailer's health.
Holiday sales usually account for 30% to 50% of a retailer's annual revenue. This year, however, many retailers struggled during the season as layoffs, economic woes and poor weather had many Americans cutting back on their spending.
"The 2008 recession, widespread heavy discounting and adverse pre-holiday weather all coalesced to produce the weakest holiday season since at least 1970," said Michael P. Niemira, ICSC chief economist, in a statement.
Overall, ICSC expects December same-store sales to decline by at least 1% "with only a few bright spots."