Have retail stores been rescued by their holiday price mark-downs? Unfortunately, no.According to reports, this year's holiday retail sales were worse than predicted. Mary Delk, director in retail practice at the consulting firm Deloitte LLP says, "This will go down as one of the worst holiday sales seasons on record." Industry forecasts predicted retail sales falling 1% and some even predicted a 2.2% increase.
Unfortunately, retail sales have not been this lucky. SpendingPulse, MasterCard Advisors show that between November 1 to December 24, luxury sales have dived 35%, footwear sales are down 14%, furniture sales are down 20%, and electronics and appliances are down 27%. Excluding automobiles, total retail sales fell 5.5% in November and 8% in December through Christmas Eve.
Is there any good news to report? Yes. This week, the Labor Department shows consumer spending shimmy on up with decreasing gas prices. As for savings, the rate increased in November.
The motto seems to be, "Less spending and more saving."
Check out the WSJ article here.
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