* E-commerce, electronics fared well in Dec-SpendingPulse
* December sales at apparel, department stores declined
* Sales in most retail sectors down vs December 2007
By Jessica Wohl
CHICAGO, Jan 6 U.S. retailers largely
experienced a strong finish to the 2009 holiday season even
though sales fell at apparel chains and department stores in
December, according to MasterCard Advisors' SpendingPulse.
Online retailers, jewelers and consumer electronics
retailers all saw sales gains last month, SpendingPulse said on
The findings back up Wall Street's view that retailers were
able to sell more merchandise without resorting to drastic
discounts as many had to in late 2008 during the global
"In general what we had was a pretty decent holiday season,
I think you saw sort of a cautious return to spending. It
wasn't an amazing holiday season," said Kamalesh Rao, director
of economic research at SpendingPulse.
The weakness in 2008, when holiday season sales fell for
the first time on record, made year-over-year comparisons look
better. Compared with December 2007, sales in December 2009 in
most sectors SpendingPulse tracks likely fell about 2 percent
to 3 percent, with online showing the only rise, Rao said.
SpendingPulse findings reflect activity the group tracks in
the MasterCard (MA.N) payments networks as well as estimates
for other payment forms such as cash and checks.
Investors will get a closer look at spending on Thursday
when many top retailers report their December sales at stores
open at least a year. [ID:nN31221237]
Analysts expect a 2 percent increase in December same-store
sales at 30 retailers tracked by Thomson Reuters Data. The
International Council of Shopping Centers said on Tuesday it
expects December same-store sales to rise about 2.5 percent, up
from its earlier forecast for a 2 percent rise. [ID:nN0540755]
SpendingPulse previously said retail sales rose 3.6 percent
from Nov. 1 through Dec. 24. [ID:nN28153151]
While Rao did not update that figure to include the final
days of December, he suggested that early signs of a recovery
in the retail sector emerged in late 2009.
"We entered into either a period of sort of modest or
moderate growth, maybe a tentative recovery," Rao said.
Online sales rose 17.7 percent in December and were likely
aided by bad weather in the week before Christmas, which led
some shoppers to buy from home, SpendingPulse said.
Electronics sales rose 7.3 percent and were up for the
fourth consecutive month, but were down about 4 percent from
Rao said electronics were "surprisingly strong," which may
say "something about the appetite for discretionary spending."
Jewelry sales rose 6.9 percent, and were also up for the
fourth month in a row. Within jewelry, mid-tier mall-based
chains suffered, while lower and higher-end retailers remained
strong, according to SpendingPulse. Excluding jewelry, luxury
sales rose 5.5 percent.
Sales at specialty apparel retailers fell 1.8 percent,
after dropping 5.7 percent in November, and 8.9 percent in
December 2008. Specialty apparel sales were down almost 11
percent from December 2007, Rao said.
Sales at department stores fell 2.3 percent from a year
(Editing by Steve Orlofsky)