US discount giant Wal-Mart struck a gloomy note on US spending on Monday, despite hopes that the capture of former Iraqi dictator Saddam Hussein might boost consumer confidence.
The US press has rung all week to the sound of 'we got him', and the National Retail Federation (NRF) was among those that said Saddam's arrest would put shoppers in a more confident mood. Stock markets soared after images of Saddam in US hands were beamed around the world.
But Wal-Mart said on Monday that footfall last week was down from a year ago and pointed to the trend towards ever-more delayed festive shopping.
The retailer warned that comparable sales growth is now running at 3.5 per cent for December, at the bottom end of the original 3 per cent to 5 per cent estimates.
A spokesman said: 'The trend in recent years has been for consumers to buy closer to need and for a larger percentage of holiday sales to be reflected in gift card purchases, which are not recorded in revenue at the time of purchase of the gift card.'
US general merchandiser Target was also cautious as it warned that demand for menswear, electricals and home decor products was slow.
The NRF said November sales of non-food items increased by 4.8 per cent against the same period last year, and rose 0.6 per cent compared with October.
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