Early Figures Show Mixed Picture on Holiday Shopping

Large discounts and worries about shortages of popular gifts lured consumers to stores this holiday weekend, but early returns show it will not be the shot in the arm that many retailers were hoping for, news services reported.

The holiday season is a critical time for retailers and for trucking. Holiday sales account for a large amount of U.S. consumer activity, and strong spending leads to increased demand for trucking services.

Forecasts for the holiday season have ranged from down 1% to up 4% from last year, the Wall Street Journal said. Although lower energy costs and tax breaks have left more cash in consumers’ pockets, the slow economy, higher unemployment and the psychological impact of Sept. 11 is making it hard to project consumer behavior, the Journal reported.

Still, deep discounts at stores like Wal-Mart brought in consumers who had already cut back on their spending after the events of Sept. 11, the Associated Press reported. However, sales at specialty and department stores appear to have only met scaled back sales expectations for the holiday weekend, news services said.

There is still hope for these stores, since an International Council of Shopping Centers study found that Thanksgiving weekend sales account for less than 10% of total holiday sales, AP reported.

But despite the lower sales predictions at traditional “bricks and mortar” stores, online shopping is expected to soar this holiday season.

Bizrate.com said it expects holiday sales from Nov. 19 to Dec. 26 to increase 31% to $6.3 billion this year, the Detroit Free Press reported. In an attempt to increase online sales, many retailers like Amazon.com and Nordstrom are offering discounts on shipping.

Online retailers depend on direct shipping companies like United Parcel Service, FedEx and the U.S. Postal Service.

Despite its increase in sales volume, online sales account for only 1.5% of all consumer spending, the Free Press said.