International News - Tough December for US, despite Christmas rush

Retailers in the US had a tough December, despite a flurry of last-minute Christmas shoppers.

US chains managed a sales rise of only 0.7 per cent in the four weeks to December 28, according to Instinet Research's Redbook Average.

According to the report, based on a sample of general merchandise retailers with 9,000 stores between them, the week before Christmas represented an improvement on the rest of the month, but it 'could not deliver a miracle'.

Wal-Mart, the world's biggest retailer, reported that sales had accelerated during the weekend before Christmas through to Christmas Eve. For two days, sales broke through the US$1 billion (£622.3 million) barrier on each day. The retailer expects comparable sales in the US to be up 2 to 3 per cent for the five weeks to January 3, below previous guidance suggesting growth of up to 5 per cent.

Star performer of the season so far appears to be department store business JC Penney. It exceeded its own expectations with a same-store sales increase of 4.5 per cent last month.

In contrast, Federated Department Stores, the operator of Macy's and Bloomingdale's, said same-store sales are likely to be down 2.5 per cent for November and December combined.

Target, the chain of general merchandise stores, expects same-store sales to come in below its forecast 3 to 5 per cent growth, despite a strong fourth week in December.