Disappointing Sales During Holiday Season

[Amerigo Vespucci]

Source: The New York Times

American consumers, uneasy about the economy and unimpressed by the merchandise in stores, delivered the bleak holiday shopping season retailers had expected, if not feared, according to one early but influential projection.

Spending between Thanksgiving and Christmas rose just 3.6 percent over last year, the weakest performance in at least four years, according to MasterCard Advisors, a division of the credit card company. By comparison, sales grew 6.6 percent in 2006, and 8 percent in 2005.

“There was not a recipe for a pick up in sales growth,” said Michael McNamara, vice president of research and analysis at MasterCard Advisors, citing higher gas prices, a slowing housing market and a tight credit market.

What did eventually sell was generally marked down — once, if not twice — which could hurt retailers’ profits in the final three months of year. “Stores are buying those sales at a cost,” said Sherif Mityas, a partner at the consulting firm A.T. Kearney, who specializes in retailing.

Read more: http://www.nytimes.com/2007/12/26/business/26shop-web.html

[whistle]

1. Well, no shite Sherlock! Exactly what did corporate Amerika expect

...after a seven year economic assault on the middle class?

[tomreedtoon]

2. WAHOO! Happy Days are Here Again!

The people who belong to the primitive religion called "business" have had their belief in a false god handed to them...actually inserted someplace very uncomfortable. And it's about time.

They believed they were superior to us. Now they are starting to see that they are connected to us poor slob consumers in ways they never imagined. And as we go down, so will they.

[acmavm]

3. Of course the high end 'luxury goods' operators made out like

bandits. They did last year last year too. But that won't keep this country floating.

Oh well, you get what you pay for and corporate America paid for a corrupt bunch of schemers who didn't really give a shit about anyone but themselves after all.

[rocktivity]

33. I don't know about those "high-enders"

I do know that I've had no problem driving past the high-end mall on my evening commute this holiday shopping season. When I drove same route home two years ago, getting past the mall would take longer and longer in the weeks between Thanksgiving and Christmas.

:headbang:
rocknation

[Vinca]

4. I spent zero nonfood dollars during the Christmas shopping season.

Actually, I rarely buy anything anyway. I look at something, it says "Made In (insert name of country other than U.S.A.)" and I put it back. It's too depressing to purchase outsourced goods. It means an American who was making a decent wage in a manufacturing plant is now flipping burgers for minimum wage.

[EnviroBat]

10. Good for you Vinca...

I adopted the boycott mentality this year too. Still enjoyed a nice visit with friends and family. It didn't put a damper on the holiday season that I didn't show up with a sack full of Chinese crap, and we made our own cards this year. Gift baskets too, full of organically grown goodies from a Raisin Rack store. Despite the constant assault and barrage of stupid advertising, I haven't seen the inside of a mall for months now.

:hi:

[LynzM]

30. Same here, envirobat :)

Made candles and cookies this year, and bought a few secondhand books. I think I only bought three new items for my daughter (clothes and earrings) as I could not get them used. :)

[EnviroBat]

31. Sounds nice...

:hi:

[GTurck]

5. Once I may have sympathized...

but no more. They gutted the middle and working classes and made garbage products. Have really become fed up with the yearly cant about how Christmas is the make or break season. Those CEO's need to get a real life. Make your business one I want to spend time in looking anytime of the year for well made products (made by people with jobs making a living wage no matter where) and I might get interested again.

When everyone is reduced to $15,000 per year and expenses for survival are over $30,000 do you think they might get the idea that they have been on the wrong track? Do you think they might someday get the idea that many people are not only stressed financially but are fed up in every other way?
NAH!! They can't see the forest for the trees - or more aptly, the merchandise for the register.

[fed-up]

6. I'm proud to say I didn't spend a dime this holiday season...nt

[Joe Bacon]

7. This year, my holiday gifts were made in America

I sent fruit from Harry and David to everyone. It was nice to open my e-mail this morning and see all the compliments.

[4dsc]

8. I didn't notice much on "Sale"

Who the fuck are these people kidding.. The only crap on sale was crap to begin with.,. Put some fucking electronic's on sale and perhaps I'll be buying.. But until then I'll be saving my money for a raining day..

[zbdent]

9. Local RW blowhard substitute was going on and on about Bloomberg (Patriotic) News saying

that the Christmas season was good, and the New York (Liberal Pravda) Times had a headline saying "Disappointing" ... of course, the RW spin was the liberal NYTimes was trying to talk down the success of Bush's economy ...

Bloomberg's was using the strict numbers of stuff charged on the credit cards ... which probably means that there are a lot of higher charges (going for gas) and people putting stuff on credit cards because they don't have the money right now ...

Plus the fact that RWers conveniently exempt food and energy costs in their assessment of inflation - which is like saying, if you ignore 9/11, the US has been almost terrorism-free ...

[AndyTiedye]

26. People are Putting their HEATING BILLS on their Credit Cards

Yes, I bet credit card sales are up, but someone should look at what category of expenditures they are.

When people start to sink financially, the first thing that happens is they max out their credit cards.

In other news, we have heard that people are charging their heating bills on their credit cards.

And 36% interest rates await you if you ever miss a payment on any of your cards.

[catmandu57]

29. I look for a lot of people to just walk away from their debt this year

Just give up, throw the keys to the house over their shoulder and drive the car as far as what's in the tank will take them. It's going to be to much, debt compounded, homes forclosed, energy bills sky high, there'll be bushvilles everywhere.

[EnviroBat]

11. Awwwww, you mean the sheep didn't show up for the

yearly credit card slaughter?

Gee, and all that money wasted on moronic advertising where everyone is gleefully swiping their credit/debit cards. No, wasn't enough to get me out to any malls this year. Hey retailers, you'll have to try a little harder to get our cash. Guess we're not falling for the insult to our intelligence you call advertising.

[catmandu57]

12. They were quick on this

Just last weekend the local news was going on and on about all the people out doing last minute shopping and spending spending spending dollars that they didn't have. The funny thing was in their spending story they showed a mall from god knows where, it certainly wasn't a local one, that and a city street that looked like NYC to me.
Yesterday I'm watching the evening news and they're boo hooing about the poor spending this year.

[madville]

13. A gain is still better than a loss isn't it

Poor babies, imagine how much they would be whining if they actually saw a decline in spending. It still rose 3.6%, I'm sure a bunch of Americans wouldn't mind getting a 3.6% raise this year.

[BushOut06]

19. "Poor babies"? WTF

Not a very good way to earn yourself respect around here, tossing around inflammatory neocon bullshit like that.

I'm sure a bunch of Americans WOULD complain about getting a 3.6% pay increase, if it cost them 5-6% more for their basic needs such as food, gas, clothes, etc.

Sure, sales might be "up" slightly this year - but that extra money actually bought less than it did last year.

[T Wolf]

23. Methinks you misread madville. I took that post to mean that businesses

are spoiled and complain about a "smaller profit than expected" when it is STILL A PROFIT. Madville calls them on this and is saying that business would really shit if they actually LOST money.

Complaining about "only a 3.6 increase" is like a spoiled child griping that they did not get the super-XBox to another child who does not have even an old Nintendo. A "let-them-eat-cake" view of the world.

With raises (if they exist) in the corporate world running less than 2-3%, workers are always losing ground. It is a matter of how much, how quickly.

[yardwork]

34. I think that you owe madville an apology. You must have misread the post.

Madville's post is an excellent point. Nothing right-wing about it. How about welcoming a new DUer and not jumping all over them without reading their post carefully?

[seriousstan]

38. Did you read the post? You are WAY off base here.

[fascisthunter]

22. When You Lose Everything, Don't Come Bitchin' Around Here (nt)

[yardwork]

35. I think that you misread madville's post. Please reread.

[Buns_of_Fire]

39. Welcome to DU, madville.

:hi: I understood what you said.

Every year, the "success" of the annual orgy of spending is measured in the INCREASE over last year. ("More, more, I'm still not satisfied.") Personally, I can see a point where no more "increase" is possible, and these things may be measured in "how LITTLE did they LOSE" this year.

The universe can expand into infinity. Economies can't. Sooner or later, there's a brick wall with your name on it.

[Lorien]

42. There's also the matter of dwindling natural resources

In nature there is no waste; everything is reused and recycled. We humans, however, don't believe in acting in accordance with nature. The World Wildlife fund says that at current production levels all rain forests will be destroyed by 2050 and the world's oceans will be "fished out" of most species in the next 30 years. China and India want to consume as Americans do, but if they and the rest of the world did we would need five extra uninhabited planet earths to meet the demand. We simply can't continue it increase consumption when current consumption rates are leading to the demise of life on earth.

[JTFrog]

14. What the fuck did they expect? Did the rich not buy enough shit to make up

for the rest of us have-nots this year?

There goes my blood pressure again. :grr:

[BleedingHeartPatriot]

15. One thing about this season. Many sheeple are starting to blink awake and realized they're being

Scrooged.

I've heard person after person remark on getting tired of being expected to buy "crap"(one of the more popular descriptors) just because it's Christmas and there is a sense that it's not only OK to avoid going into debt at this time of year, it's the smart thing to do.

This, as opposed to three or four years ago, when folks looked askance at me when I decried the overt consumerism rampant during the holiday season.

Now that they're personally impacted, people are taking notice. In a big way. MKJ

[robcon]

16. What's wrong with 3.6% growth?

It's not a boom time - but as long as the retailers grew in sales over last year, I thought that would be a good season.

[BushOut06]

18. Sales are actually DOWN

I don't have a link, but I do recall reading that while it might appear that sales increased slightly, overall sales are actually down. If you take into effect such things as energy costs, inflation, etc, then people actually spent more money for less this year.

[BushOut06]

17. Expect the conservative spin machine to turn this into a good holiday season

They'll take one sales statistic, pull it out of context, and hype it as their 'proof' that the economy is still strong.

[Sagan]

20. They already have...

I kept seeing stories on the "news" programs over the last few days citing 19% increase in sales. It's a Christmas miracle!

[The Croquist]

What's wrong with saving?

I don't know if holiday spending was disappointing or not but I do know that there's nothing wrong with putting money into savings.

[zbdent]

27. according to the wealthy, poor trying to save money is unpatriotic ...

especially since their wealth is based on the debt of the poor ...

[CountAllVotes]

28. Welcome to the DU The Croquist!

:hi: and yes, I agree with you! There is absolutely nothing wrong with saving money, especially this time of the year when the cost of living is especially high due to the weather and the inflation factor alone!

[fascisthunter]

21. Conservative Economics (nt)

[stubtoe]

24. Typical - retailers ALWAYS bitch about Xmas sales.

Anyone remember when the business community actually said (or admitted) that they had had a GOOD holiday shopping season?

:nopity:

[sentelle]

25. blah....

Buy more crap, spend more money.
This year, Mrs. senrik and I decided to make our presents to each other. I bought some fabric from a local mill, and made clothing with her. We had a good time, reinforced our relationship, saved scads of our hard earned money, and had the opportunuty to customize everything about the clothing. Yes, we don't have kids, but heck, otherwise its a good thing.

When the stores stop selling crap, I will return. If they don't exist at that time, then they were too stupid to stay in business. Like CompUSA.... if you sell a product with a rebate (where you cannot get the rebate slip until after the rebate is over) then I will not return, if you make a habit of that, you go out of business, simple as that.

If you have to sell at cost to bring in customers, you are not making a living. Making a living implies profit. If you have to cut your prices to cost, then something is very wrong.

[unkachuck]

32. could this finally mean relief...

....from the insatiable background noise of commercials and advertisements?....for a little while at least....maybe?

[Nobody]

36. The news stories are all over this one

Local news program, not sure which station, not my car. "Xmas spending is down this year, next up, more people requesting aid for their heating bills."

Looks like the reason behind number one is number two, or part of it anyway. My own home is heated as low as I can go without the pipes freezing.

I didn't spend a retail penny this year. I bought an evening at the movies for one person, and a family-sized meal or two of homemade goodies for everyone else. Movie tickets, popcorn, and basic groceries were all it cost me. And the time to cook and the time spent with family to see a movie we enjoy.

It's not my duty to prop up the economy when I don't agree with how it benefits the few at the expense of the many.

[pinniped]

37. Should have went to Jareds.

Sorry, I didn't contribute to any retail sales this year. I was in LV.

[Doctor_J]

40. I went to the local mall yesterday to get my eyeglasses before the EOY,

and you could have shot off a cannon and not injured anyone. I wonder what things will look like when it's an actual recession :eyes:

[slackmaster]

41. I didn't buy a blessed thing for anyone including myself

I gave cash gifts to my niece and nephew, and cooked dinner for my mom.

That's all.

[thunder35]

43. why do they think it has to up every year?

[4dsc]

44. I spent far less

than last year and made good money.. I've just had it with the commercialism that has become Christmas..