ICSC: International Council of Shopping Centers

December sales increased 3.1 percent at U.S. chain stores

Consumers waited until late December to finish their holiday shopping, causing U.S. chain store sales to increase 3.1 percent, on a year-over-year basis, according to ICSC’s index. The increase was higher than the expected 2.5 percent forecast for December. For the two-month holiday season (November and December combined), chain store sales posted a 2.8 percent gain, which was in line with ICSC's projections of a 2.5 percent to 3.0 percent gain for the season. By comparison, the 2005 holiday season posted a 3.6 percent increase.

Leading sectors for the month were luxury chain stores and wholesale clubs, which saw sales increase by 8.2 percent and 6.2 percent, respectively for December. Department chain stores continued to post healthy results as sales rose 3.6 percent in December. The other sectors that posted increases were drug stores (7.2 percent) and discount stores (2.3 percent). As a result of December's weather being the warmest in five years, apparel chain stores suffered and saw sales decline by 0.9 percent.

“More so than in past seasons, this holiday season came down to the week before Christmas as consumers waited to the last minute to complete their shopping, said Michael Niemira, ICSC's chief economist and director of research,” said Michael Niemira, ICSC's chief economist and director of research. “Overall, this holiday season was a moderate one for retailers with some sectors performing stronger than others. As we look towards January, we expect comp-store sales to increase by 2.5 to 3.0 percent as consumers begin to redeem their gift cards in earnest.”