STOCK MARKET WATCH -- Friday, 27 December 2013

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21. U.S. Holiday Sales Rise 3.5%, SpendingPulse Says

http://www.bloomberg.com/news/2013-12-26/u-s-holiday-sales-rise-3-5-spendingpulse-says.html

U.S. retail sales rose 3.5 percent during the holiday season this year, helped by deep discounts at malls and purchases of children’s apparel and jewelry, MasterCard Advisors SpendingPulse said.

Sales of holiday-related categories, such as clothing, electronics and luxury goods, rose 2.3 percent from Nov. 1 through Dec. 24 compared with a year earlier, the Purchase, New York-based research firm said today. SpendingPulse tracks total U.S. sales at stores and online via all payment forms.

Falling store traffic in recent weeks and uneven demand, especially for apparel, spurred chains to risk earnings by pouring on the discounts to generate sales. Retailers including Gap Inc. were offering as much as 75 percent off and some, including Macy’s Inc. (M) and Kohl’s Corp. (KSS), were keeping stores open around the clock starting Dec. 20.

“You are seeing, ‘It’s OK for me to go out and spend,’” Sarah Quinlan, a senior vice president at MasterCard Advisors, said in a phone interview today. “That being said, they are still being cautious, and they are picking their retailers. It is not hot 2006-2007 spending we are seeing.”