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VOL. 127 | NO. 252 | Thursday, December 27, 2012

Shoppers Disappoint Retailers

By DANIEL WAGNER

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WASHINGTON (AP) – U.S. shoppers spent cautiously this holiday season, a disappointment for retailers who slashed prices to lure people into stores and now must hope for a post-Christmas burst of spending.

Sales of electronics, clothing, jewelry and home goods in the two months before Christmas increased 0.7 percent compared with last year, according to the MasterCard Advisors SpendingPulse report.

That was below the healthy 3 to 4 percent growth that analysts had expected – and it was the worst year-over-year performance since 2008, when spending shrank sharply during the Great Recession. In 2011, retail sales climbed 4 to 5 percent during November and December, according to ShopperTrak.

This year’s shopping season was marred by bad weather and rising uncertainty about the economy in the face of possible tax hikes and spending cuts early next year. Some analysts say the massacre of schoolchildren in Newtown, Conn., earlier this month may also have chipped away at shoppers’ enthusiasm.

Retailers still have time to make up lost ground. The final week of December accounts for about 15 percent of the month’s sales, said Michael McNamara, vice president for research and analysis at MasterCard Advisors SpendingPulse.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 86 374 7,749
MORTGAGES 89 414 9,199
FORECLOSURE NOTICES 9 52 1,358
BUILDING PERMITS 197 1,007 16,607
BANKRUPTCIES 45 279 5,406
BUSINESS LICENSES 28 154 2,948
UTILITY CONNECTIONS 0 139 3,250
MARRIAGE LICENSES 30 128 1,688

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