US retailers face a nail-biting wait for the Christmas shopping frenzy to take hold, following a lacklustre November and a slow start to December.
Despite a surge in Thanksgiving sales, which accounted for about 20 per cent to 25 per cent of sales for November, Wall Street broker Bear Stearns analyst Dana Telsey said shoppers are delaying their big Christmas spend.
She said: 'So far, the start to December is not as robust as everyone would have liked. There is typically a lull post-Thanksgiving until around December 18, when the procrastinators realise that the holiday season is coming up.'
Despite some discounting to try to kick-start the season, Telsey said: 'The feedback from most companies is that margins are solid and the big days are still ahead.'
According to the International Council of Shopping Centers, more than 40 per cent of holiday sales occur between December 18 and December 24, with an additional 20 per cent or more between December 26 and December 31. US retailers reported a mixed bag of November sales. The Bank of Tokyo-Mitsubishi reported that November sales at 74 monitored retail chains increased by 3.6 per cent - less than the 4 per cent forecast by the bank.
Upmarket department stores, such as Saks and Nordstrom, enjoyed relatively strong November sales. Mass market retailers were less impressive, as shown by Wal-Mart's 3.9 per cent increase.
Telsey added: 'Christmas this year benefits from an additional holiday shopping day, a plethora of must-have items, leaner inventories - suggesting a healthier mix of full-price sales - and a brighter macro and geopolitical backdrop.'
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