Retailers Finding No Joy in the Holidays

Over the weekend, sales at such stores totaled $12.6 billion, boosted by $7.2 billion in spending on Saturday, the biggest retail shopping day of the year so far, ShopperTrak said. The weekend's sales were up 1.6% compared with last year.

Despite the last-minute shopping boost, ShopperTrak upped its estimate for the decline in December retail sales from 5.4% to 5.5% compared with last year.

"The industry is still struggling," Niemira said.

The disappointing overall retail sales were reflected at individual retailers. Wal-Mart, for instance, said that its overall sales are still coming in at the low end of its plan of 3% to 5% same-store sales growth for December. But the company said that sales at its core Wal-Mart stores division are coming in below that range. Additionally, comparable-store sales at Wal-Mart's Sam's Club division are expected to be negative, the company said.

"Although sales dollars are strong, comparisons with last year are difficult. This holiday season is very difficult to predict with fewer shopping days and customers buying closer to the event," Wal-Mart said in a statement.

Wal-Mart's not the only one feeling the holiday pinch. Federated said Monday that its same-store sales for November and December are coming in below its estimated range of flat to down 2.5%. Wal-Mart closed trading Monday down $1.20, or 2.4%, to $49.59. Federated finished trading off 15 cents, or 1.5%, to $9.63.

"Sales did not strengthen as much as anticipated in the third week of December," the company said in a statement. "Given the anticipated volume of the next few days before Christmas as well as the week after Christmas, it is difficult to forecast."

A falloff in same-store sales is not necessarily a bad thing, analysts say. Some of the declines in spending are coming because retailers are seeing an increase in productivity and a decrease in supplier costs, and they are passing on the savings to consumers in the form of lower prices.

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