Christmas shoppers boost chain store sales: reports

NEW YORK (Reuters) – Sales at chain stores rose in the week
before Christmas, retailers said on Wednesday, with last-minute
shoppers and the late Hanukkah holiday boosting the bottom
line.

However, some retailers said most transactions took place
on December 23 and were disappointed shoppers did not take
advantage of the extra shopping Saturday on December 24.

Chain store sales were 2.8 percent higher in the week to
December 24 after rising 2.4 percent in the prior week,
according to a report by the International Council of Shopping
Centers (ICSC) and UBS Securities LLC.

In a separate report, Redbook Research, an independent
research company, said sales at major retailers rose 4.5
percent on a year-over-year basis in the week ended December
24.

“Procrastinating consumers and a late Hanukkah (December
25) helped to lift the holiday season’s performance,” said
Michael Niemira, ICSC’s chief economist and director of
research.

Hanukkah, the Jewish festival of lights, is based on a
Hebrew lunar calendar, which means it falls on different dates
of the Gregorian calendar every year. This year it began on
Christmas day for the first time in decades.

Despite differing views on the week preceding the two
holidays, retailers are looking forward to the next phase of
holiday shopping, gift card redemptions.

“While retailers are pleased with last week’s performance,
the holiday shopping season is far from over, since about 60
percent of gift-card redemptions occur between December 26 and
the end of January,” Niemira said.

Since revenues related to gift cards are recorded only once
they are redeemed, retailers hope consumers use them soon,
Redbook Research said.

“Increasingly, retailers view this period as ‘Phase Two’ of
the season when fresh merchandise is needed to attract the
consumer,” Niemira said.

The ICSC-UBS Weekly Chain Store Sales Snapshot is compiled
from a group of major discount, department and chain stores
across the country that report their weekly results.

The Redbook data are compiled from a sample of same-store
sales at general merchandise retailers representing about 9,000
stores. Same-store sales measure revenue at stores open at
least a year.

Niemira said sales for the month and the holiday season
remain on track for a moderate year-over-year increase of 3.0
percent to 3.5 percent.