Retail stores report sluggish start to gift season

NEW YORK – The start of the holiday season was respectable but unimpressive for many of the nation’s retailers, with consumers jamming stores and malls on Friday and pulling back as the weekend wore on.

Big chains including J.C. Penney Co. Inc. and Sears, Roebuck and Co., which offered two days of big price breaks, were pleased with their sales. But Wal-Mart Stores Inc. was less fortunate – the industry leader said its sales in the seven days that ended Friday were disappointing, and the company lowered its sales forecasts for November.

Consumers spent about $8 billion at the nation’s malls and stores the day after Thanksgiving, the traditional start of the holiday shopping season, compared with $7.3 billion a year ago, according to the industry research firm ShopperTrak.

“Friday overall was strong, but Saturday was weak and disappointing, so together it was only a modest two-day performance,” said Michael Niemira, chief economist at International Council of Shopping Centers. “Still, I continue to believe that this is not a bellwether for how the season will end up.”

Wal-Mart’s holiday weekend sales suffered because it didn’t offer the deep discounts it did in past years, hoping to boost profits, analysts said. Wal-Mart said Saturday it now expects same-store sales in November to be up only 0.7 percent, instead of the projected 2 percent to 4 percent.

The National Retail Federation trade group said a survey of 4,670 shoppers showed that each spent an average $265 over the weekend. Overall, the federation estimates that U.S. consumers spent $22.8 billion Friday, Saturday and Sunday, which represents 10 percent of the $220 billion expected in holiday sales this year.

The survey found that 61 percent of consumers visited a discount chain over the weekend, compared with 44 percent for department stores and 41 for specialty stores. Thirty percent of those surveyed said they bought products on the Internet over the weekend.