Re-entered retail again today. Avoiding apparel, LE, ANF, because of warm weather. Sticking with electronics. Back into BBY, COOL, VUSA. How low can they go?
US Retail Weekly Sales Rise on Holiday Shopping
New York, Dec. 21 (Bloomberg) -- U.S. retail sales at stores open at least a year surged 7.9 percent last week, keeping the holiday season on track to meet or beat forecasts, according to Bank of Tokyo-Mitsubishi Ltd.
The year-over-year increase for the seven days ended Dec. 18 was the biggest weekly gain this season. Sales for the November- to December holiday season are forecast to rise 5 percent to 5.5 percent from the same period a year ago, Bank of Tokyo said.
Unemployment at 29-year lows and high consumer confidence encouraged shoppers to snap up DVD players, shoes, clothing and other gifts. Electronics stores, such as Best Buy Co. and Circuit City Group, are expected to benefit this month, as are jewelers including Zale Corp. and discounters like Wal-Mart Stores Inc.
Saturday was the busiest day of the season to date, analysts said. Of the estimated 310 million people who visited enclosed malls last week, 68 million, or 22 percent, shopped on Saturday, the International Council of Shopping Centers said.
Strong Season
For the 24 days ended Dec. 19, same-store sales gained 5.8 percent from a year earlier, according to First Data Corp.'s TeleCheck division, which reviewed shoppers' checks at 27,000 of its 210,000 locations. Checks account for about a third of all retail spending, the company said.
Total sales at smaller stores in malls rose 6.8 percent for the week ended Dec. 19, New York-based ICSC said.
Sales gains may continue this week as late shoppers rush to finish their gift buying. About 52 percent of consumers had completed their shopping as of Sunday night, according to a poll by America's Research Group, a consumer and marketing research firm.
''This could be a really incredible week if retailers have the right merchandise and prices out there,'' said Britt Beemer, America's Research Group chairman and retail consultant.
The number of people doing most of their holiday shopping in the last three or four days of the season has increased in recent years, according to Beemer's polls. About 15 percent of consumers surveyed have waited until the last few days to finish shopping, more than double the 6 percent in 1994, he said.
The week after Christmas ''is a very big week and it has been getting bigger consistently,'' said Kmart Corp. spokesman Robert Burton. ''When we look at the month overall, we pay a lot of attention to the week before Christmas and the week after.''
Successful Retailers
Even if there isn't a wave of last-minute shoppers, the season may already be a success, said Bernard Freibaum, executive vice president of General Growth Properties Inc., the second- largest U.S. mall operator.
So far this holiday season, same-store sales at General Growth's 131 malls have increased 5.7 percent from the same period last year, Freibaum said, with jewelry and some smaller clothing stores showing strong gains. Only department stores appeared to lag, he said.
''The pendulum in the regional mall has swung to the specialty retailers in the middle of the mall and away from the anchors at the end,'' he said.
Moreover, the retailers may be more profitable this year than last, when they dropped prices and staged broad promotions to draw in shoppers. While there have been sales, they mostly have been on specific items, analysts said.
''Stores are planning for these promotions,'' said PaineWebber analyst Jeffrey Edelman.
Best Buy's same-store sales are expected to rise 4 percent to 6 percent this month, while Wal-Mart's will gain 5 percent to 7 percent, analysts said.
Dec/21/1999 16:27
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