Retail Sales Rebound, Beating Forecasts

[TomCADem]

Source: NY Times

Americans are splurging as though it’s 2007 again.

Shoppers spent more money this holiday season than even before the recession, according to preliminary retail data released on Monday.

After a 6 percent free fall in 2008 and a 4 percent uptick last year, retail spending rose 5.5 percent in the 50 days before Christmas, exceeding even the more optimistic forecasts, according to MasterCard Advisors SpendingPulse, which tracks retail spending.

The rise was seen in just about every retail category. Apparel led the way, with an increase of 11.2 percent. Jewelry was up 8.4 percent, and luxury goods like handbags and expensive department-store clothes increased 6.7 percent. There was even a slight increase in purchases of home furniture, which had four consecutive years of declining sales. The figures include in-store and online sales, and exclude autos.


Read more: http://www.nytimes.com/2010/12/28/business/28shop.html?src=busln

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Well, I guess this is why I could not find any parking at the mall for the first time in three years. Folks were getting a tad aggressive with respect to open parking spaces.

[bluestateguy]

1. "It's all fake": Doomers and Gloomers

Now if you'll excuse me, I have to go say my daily prayer to my picture of Nouriel Roubini.

:sarcasm:

[DavidDvorkin]

7. And they have anecdotal evidence to prove it!

[impik]

10. Hee. These people thrive of depression. Good news are really bad for them.

[askeptic]

15. One factor is not enough to use as a guage

Yes - that 5.5% increase over last year (50 days before Xmas value) is good. But you have to look at the other elements too.
How much was due to near-or below-cost sales run by the merchants?
Did unemployment show a significant change?
What about home values?
What about growth of our manufacturing base?
What about the margin squeeze going on in manufacturing of all types?
Has manufacturing started to come back to the US?

When you start seeing positives in a majority of sectors, then there's something going on...

[IScreamSundays]

2. What garbage...

I am a HUGE holiday spender. Have been for years. This is the second year in a row that my spending has been halved. Half as much last year, and half of the half this year. I am pretty sure we are not the only household pumping the brakes.

I despise our MSM. Take your daily dose of koolaid and antidepressants. It is all good. Everything is on the grow.

[Proletariatprincess]

5. I agree. There is something wrong with this report.

In my family, we just cancelled christmas altogether. No spending whatsoever. We noticed fewer people with trees and lights in the every neighborhood. No one I know is spending as much as last year and even less than the year before. There were fewer celebrations, fewer parties than years past. People aren't traveling either.
All in all I would say that people are demoralized by the economy and not spending as much for anything. My experience sure doesn't jive with this report.

[Skink]

3. As a cashier I see a huge trend toward cash sales.

that has to be good.

[kath]

24. Around here it's generally the illegal immigrants paying with cash -

all made under-the-table, of course...

[msongs]

4. China Inc thanks us nt

[Aramchek]

20. howdy, Scrooge!

[nyy1998]

6. It's a good sign, hopefully this will have a domino effect.

Especially for those of us unemployed!:-(

[sofa king]

8. Apparently someone bought 2 million copies of George Bush's book.

And paid for it with redirected Iraqi slush fund money, no doubt.

[mackerel]

9. LOL

It seemed to me about the same amount of shoppers as last year. There were a lot of deals this year. I got an additional gift card with one of my purchases just because I had spend more than $100.00 on an item. Over all though I spent the same as last year which was about 20% less than Christmas of 2008. I'd say 2007 was my last big spending year.

[Le Taz Hot]

11. Really?

Maybe it's just my area but I live in the back of a major mall and, in days past, there was a line of cars to get into the mall that stretched back 2 city blocks. This year and the last two years, you could drive right up to the mall and find a parking space.

[DeSwiss]

12. What a load. n/t

[FBaggins]

13. Somewhat encouraging.

To see that large an increase when unemployment has yet to substantially improve. The spending per person with a job is clearly significant.

[lunatica]

14. I wonder what percentage are maxing out their credit cards before declaring

bankruptcy.

Let's see. No real upturn in jobs. The jobs that are available are paying less. Foreclosures are still hitting record numbers. No new jobs are being created. The price of gas is skyrocketing. The banks still aren't loaning money. The rich are 'nervous' and therefore aren't creating jobs.

But people have loads of money to spend. Sure. yeah. Why not?

[Aramchek]

21. can you not accept the fact that the economy is actually improving?

let go of the doom and gloom.

[lunatica]

22. Not as long as I'm going down the foreclosure path

and still facing more cutbacks and possible lay-offs at work. I've already been laid off once, last year and was forced to declare bankruptcy even though I have a job. But if you want to think everything is better, it's certainly your right. Go for it.

[NickB79]

23. Where are the jobs to indicate the economy is improving? nt

[tinymontgomery]

16. As was said earlier, discounts

Went and brought the wife a coat day after Christmas. Priced at $230.00, paid $50.00. So I helped raise the splurge. Our extended family used to spend around $1000.00 on 6 of us, this year about$50.00 all together.

[Broderick]

17. Clothing

The biggest increase was in clothing. That doesn't surprise me, because I think folks are doing more on the necessity level...

[itsrobert]

18. I was delivering for Fedex. And all the drivers said they never seen a year like this

We worked our asses off for peanuts.

[Aramchek]

19. haven't seen a Mall parking lot so jammed for years and years