Holiday Sales Tumble as U.S. Consumers Scale Back on Jewelry, Electronics

[marmar]

Holiday Sales Tumble as U.S. Consumers Cut Spending (Update4)
By Heather Burke and Brad Skillman


Dec. 26 (Bloomberg) -- Consumers spent at least 20 percent less on women’s clothing, electronics and jewelry during November and December, resulting in what may be the biggest holiday-shopping sales decline in four decades.

“It’s been difficult, much more difficult than anyone expected,” Gilbert Harrison, chairman and chief executive officer of retail advisory firm Financo Inc., said today in a Bloomberg Television interview from West Palm Beach, Florida. Consumers “will spend on necessities, they’ll spend on what they need, but they’re being very particular in what they’ll buy.”

Discounts of 70 percent off or more by Macy’s Inc., AnnTaylor Stores Inc. and other retailers failed to prevent a spending drop of as much as 4 percent during the final two months of the year, according to data from SpendingPulse. Including fuel, sales tumbled as much as 8 percent.

More than a dozen retailers, including Circuit City Stores Inc., have sought bankruptcy protection this year as the credit squeeze and the U.S. recession dried up funding. The holiday results indicate further filings are possible, along with consolidation among similar companies, said Harrison.

The decline is the worst 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. ........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=asEhz._blSwg&refer=home

[burythehatchet]

1. What a concept, buying what you need as opposed to consuming the resources of the planet

to buy disposable crap.

[glowing]

2. Its not just people feeling pinched.. I think people are examining their

lives and deciding what's better for their families, environment, and needs. In particular time with family, out-weighs a larger pay check to buy junk any day. I guess in a way, I'm a bit lucky, my pay is always at the low meager end.. we spent like we normally do, very little... mostly on the kid and just a couple of goodies for me and hubby.. I bought my sister and her husband some trees for the rainforest.. I got all the grandma's photos of the kid and the fam.. which is all they need in their cluttered homes and all they really want. My husband found a ring on super discount and had saved up all year.. he was pleasantly delighted when they slashed the jewelry prices and he walked out with cash still on hand. We married almost 4yrs ago with no money and standing in a court house... since then he's gotten me the rings he wished he could have then. Next its my turn to upgrade his ring.. he's still wearing the stand-by gold matchers I bought on our first aniversary.

[barb162]

5. I think you're right with some people but others are just scared

shitless and saving whatever they can.

[glowing]

8. Boomers are scared shitless. My mom doesn't want to open her 401K.

The money that these boomers lost and would have spent on second homes, children, granchildren, and vacations is really going to hurt over the next few years. AND they know that they cannot re-coup their losses thru jobs they are now competing over with younger people with less medical needs. Ageism is real and disgusting. Now, if we had universal healthcare, they would be prime hires. No children to be having or running all over the place and experienced. Time for govt healthcare.

[Sarah Ibarruri]

3. Correct me if I'm wrong....

I think the kind of economy we've been living in is one in which the majority have played the fools, spending all their money, going into debt, and the ones that have benefited totally have been the mega-rich. Now they are better off than ever and we're all screwed.

Am I correct, or way off base?

[TomInTib]

4. And, naturally, TomTheGenius put jewelry on sale.

"Buy One, Get the Next at Half-Price"

Equal or Lesser, blah blah....

DumbAss...

[TahitiNut]

6. The seminal question is, however, .....

... how were holiday sales of The Clapper this year??

"Clap on! Clap off!" :rofl:

[nadinbrzezinski]

7. Went to Penneys today. We NEEDED a set of new sheets for the bed

and I saw they had some good sales on the sweaters my mom likes, (her b-day is in a month) So got her TWO since they were that cheap. Got hubby a couple new shirts... he now needs to get rid of some of the old ones And of course the sheets, which the sun conure made holes in over three years ago. They needed replacing since the holes are that large any longer.

Me, I go some stuff I needed last month during the Thanksgiving sale, and I may get a few more items in the coming months (after loosing a lot of weight, looking at the pile of old crap in the hallway that will go to charity)

And today Penney's was a little more crowded than Sears {Where we had to get a clothes washer)

I remember telling my hubby when I came home a month ago... this is gonna be a lousy season... Sears was quieter than a church.. and today it was a little busier, but not by much.

People are getting what they need. Truly

Now I worry about a local retailer... owner looked long faced... I fear his numbers are not that good

And yes I am aware that those cheap sweaters have an inherent cost to them... sadly

[RB TexLa]

9. People saving their money is a good thing

[northernlights]

10. last year for Christmas

I got myself some specialty foods, such as lobster bisque, that I normally never buy.

This year I bought a big cooked ham that was on sale and Jakey my dog and I had a nice ham dinner. (I'll be able to squeeze about 24 "special" meals out of that $12 ham to boot!). Also 8 pairs of men's winter socks (thicker, warmer and longer-lasting than woman's) on sale.

I remember back in the early 80s recession, when I'd just been hired at DEC and I took advantage of a going out of business sale ahead of Christmas and bought a ton of sweaters and a nice coat. I got mostly men's sweaters because they are sturdier and warmer than woman's sweaters (also better colors!), which I swear they make to wear out within a year or two. The sweaters are a little frayed, but I still have them and wear them. I felt sorry for the woman at the register, who was surly and rude to me, but she didn't know that was my first new clothes in 10 or so years.

[Cass]

11. And this comes as a surprise to retailers?

Have they been living under a rock the last few months? Did they not believe the economy is bad? I've seen a few news reports in the last few days lamenting the fact that the retail numbers are way down. The surprised tone of the reports is baffling to me. WTF did they expect this holiday season?