Holiday retail sales show modest gains

CNY Business Journal (1996+), Jan 07, 2005

In the midst of bustling after-holiday shopping activity, New York State's retailers gave the 2004 holiday shopping season a "B" grade. With great disparity from merchant to merchant, consumer electronics, high-end goods, and luxury merchandise continued to be die, clear winners in what proved to be a modest year for many retailers.

According to James R. Sherin, president and chief executive officer of the Retail Council of New York State, "We have members who experienced one of the best seasons in their history, and others who are quite disappointed with the end result. Fortunately, the final days before Christmas and afterholiday sales appear to be strong, and this should buoy retailers' spirits."

Retailers throughout the state reported their results through the Retail Council's annual "Holiday Sales Watch," a weekly snapshot of consumer trends and shopping activity between Thanksgiving and Christmas. This report marks the end of the Council's five-week assessment of the holiday season.

The 2004 holiday shopping season got off with a bang, as retailers reported robust Black Friday sales. The boom didn't continue, however, as activity leveled off the remainder of the weekend - raising a cautionary flag for retailers. Sluggish sales perplexed many right through the third week of December, but relief came in the final days before Christmas and on Dec. 26, when merchants reported heavy sales activity, spurred, in part, by gift-card redemption.

Sherin commented, "This boost at the end of December is further evidence that consumers are trending toward shopping later in the season. It is also evidence of the big impact that gift cards will have on the industry. Since these sales aren't counted until the cards are redeemed, holiday sales will spill over into January, which extends the time retailers need to wait to determine the ultimate success of the season."

Merchants participating in the Retail Council survey attribute the moderate season to the lack of must-have holiday gifts, high auto/home-energy costs, and the general malaise of consumers mired in financial troubles and unable to spend as much during the holidays. 2004 hot holiday sellers

* For girls: Barbie, Bratz, Dora the Explorer, video games, Leap Frog, Care Bears, Cabbage Patch dolls, Elmo, educational toys, and arts/crafts supplies

* For boys: Video games, Spiderman, cars/trucks (especially remote-control), Legos, Yu-Gi-Oh, Leap Frog, Elmo, train sets

* For adults: Home electronics (DVD players, televisions, digital cameras), apparel, accessories, jewelry, books,

CDs, DVDs