Retail Sales Plummet

Wall Street Journal ^ | DECEMBER 26, 2008 | ANN ZIMMERMAN, JENNIFER SARANOW and MIGUEL BUSTILLO

[An Old Man]

Price-slashing failed to rescue a bleak holiday season for beleaguered retailers, as sales plunged across most categories on shrinking consumer spending, according to new data released Thursday.

Despite a flurry of last-minute shoppers lured by the deep discounts, total retail sales, excluding automobiles, fell over the year-earlier period by 5.5% in November and 8% in December through Christmas Eve, according to MasterCard Inc.'s SpendingPulse unit.

[An Old Man]

Also NotE:

This spells a bitter disappointment for companies that had hoped the holidays would offset a year when sales have been sliding steadily, draining profits and, in many instances, undermining the ability to pay down debt. The industry already has seen a parade of retailers entering bankruptcy proceedings, such as Circuit City Stores Inc., and liquidating, including Mervyn's LLC and Linens 'N Things Inc. The weak holiday sales mean more chains are likely to follow suit next year.

[pnh102]

Wow... this means there might be some good deals to be had now.

[xcamel]

Hmmm... and Amazon had the best year ever....

[whipitgood]

A 5.5 and 8 percent drop is “plunging”? Why does this seem more like a modest decline?

[nobama08]

Survival of the fittest. How’d Wal-Mart fare?

[Night Hides Not]

A 5.5 and 8 percent drop is “plunging”? Why does this seem more like a modest decline?

Such a rate of decline in government spending would be considered "catastrophic". Unless that decline came from defense spending, of course.

[Domandred]

Everyone spent their money on guns. I know my family did.

[BlessedBeGod]

On the other hand...Amazon says 2008 holiday season was 'best ever'

[fso301]

fell over the year-earlier period by 5.5% in November and 8% in December through Christmas Eve, according to MasterCard Inc.'s SpendingPulse unit

If more people decided to pay cash, might the data be skewed?

[Eye of Unk]

I went into our big box store here in Wasilla Alaska, Fred Meyers on the 23rd because they always have a 50-70% sale on Christmas toys, not this year, the shelves were stacked full and nobody was buying, I guess it kinda backfired on them thinking they could hold out and keep the profit margin intact.

America is hurting financially and even sales events won’t help.

And of course this also means imports are just sitting at the docks, China has loaded ships at its docks that won’t sale because the stores like Walmart are not selling.

While most people are doing this to stretch dollars because of financial hardships there are those that have decided its also a passive form of indirect protest or resistance, I look at it as such, I resist buying but the absolute minimum, no credit card purchases and I have paid off my bills.

And of course when millions are doing the same thing it affects the economy and thus affects politics, I know its a stretch but has any thinkers thought of America just doing a sit down protest? They can bluster all they want but America is protesting, and yet they still have no clue why.

[PugetSoundSoldier]

Yep. And don’t ignore the weather. For a large chunk of the shopping season 2/3rds of the US was buried under ice or snow. I went out to the mall on Christmas eve - around 2 PM - to do some last minute shopping. The mall was empty, but that’s not because of the lack of gifts (gauging from the number of UPS and Fedex trucks in front of the neighbor’s houses) - it was due to 12” of snow on the ground and simply impassible roads around here.

A little thaw today, and the mall was packed...

[niteowl77]

Everyone spent their money on guns.

Unless it was an inexpensive stocking-stuffer for the non-shooters, the niteowl77 family gift of choice this year was ammunition.

Mr. niteowl77

[pineybill]

More retail outlets will go out of business. But this is history repeating itself. Just for fun, here are some of the chains I remember. I'm in the mid-atlantic, but feel free to chime in with regional stores from around the country.

Two Guys From Harrison
EJ Korvettes - had a great record department
Great Eastern
Alexander's
White-Modell’s
Robert Hall - still remember the Christmas jingle -”We're doing our Christmas shopping at Robert Hall this Year”
Stern's
Caldor
Gimbel’s
Hahne’s
Abraham and Straus

[NonValueAdded]

This spells a bitter disappointment for companies that had hoped the holidays would offset a year when sales have been sliding steadily

And what was the basis of that hope? What (with the exception of the One) could possibly lead a thinking person to believe sales would pick up as the economy crashes down all around us?

[Psycho_Bunny]

You’ve never worked retail? 8% can wipe you out.

[Leisler]

"Yeah me too! All Christmas at the corner and not one damn sale! Obama bet'ah be get'n this economy going!"

[ThePythonicCow]

Robert Hall - still remember the Christmas jingle -”We're doing our Christmas shopping at Robert Hall this Year”

Or another Robert Hall jingle, for anytime of year:

Robert Hall this season
will show you the reason.
Low overhead, low overhead.

[SisterK]

Economic protest is the only vote counting these days. Other than buying ammo, I am trying to shrink my economy till I fall off the radar.

[patton]

“you blew a seal!”

“No, its just ice cream!”

(sorry)

[durasell]

http://en.wikipedia.org/wiki/List_of_defunct_department_stores_of_the_United_States