Retailers Eke out Modest Week Before Christmas Despite Snow and Ice

ALBANY, NY (12/30/2008)(readMedia)-- Pummeled by back-to-back storms in the final days before Christmas, many New York state retailers still managed to cobble together a decent holiday selling season. Week before Christmas sales were deemed a modest success by just more than half of surveyed retailers who ultimately gave the 2008 season a "C-" letter grade, down slightly from the grades given in recent years.

Fifty-one percent of retailers polled by the Retail Council of New York State said their week-before-Christmas sales were better than or the same as their sales during the same week in 2007. After-Christmas sales activity helped to redeem the season for others - 48 percent of merchants reported sales that were better than or the same as their sales in 2007 for the days immediately following the holiday.

Retailers throughout the state reported the results through the Retail Council's annual "Holiday Sales Watch," a periodic snapshot of sales activity in stores small and large. This third Holiday Sales Watch was conducted Dec. 29 and gauged retailers' perception of sales activity the week before and just after Christmas. This report concludes the Council's assessment of the holiday season.

"A perfect storm of a growing recession, plummeting consumer confidence and ill-timed winter snow and ice produced a generally gloomy holiday selling season," said Retail Council President and Chief Executive Officer James R. Sherin.

Following respectable activity over Black Friday weekend that ran counter to analysts' projections, soft sales in the first two weeks of December disappointed many who hoped the season would fare better than anticipated. Nearly 60 percent of surveyed merchants described their sales the first two weeks of December as less than their sales in 2007 for the same period of time.

Retailers were left to pin their hopes on a robust week-before-Christmas, but the snow storms during the critical time period dashed this expectation for some. Many survey respondents pointed to Mother Nature as the biggest culprit for the outcome:

"If it wasn't for the weather, this would have been an A+ year," said one frustrated survey respondent.

Another said, "Fifteen percent of the problem was the economy. Eighty-five percent of the problem was the weather."

"Some merchants were able to emerge from the season in decent condition, but many others struggled to find the right combination of price reduction and promotional appeal that would entice the consumer to buy. Sales were made, but profit margins were squeezed very tight. And then there was the weather to contend with," said Mr. Sherin. "Retailers can only be hopeful that 2009 will be brighter and more prosperous for consumers and themselves. If only we could give the 2008 holiday season an incomplete, instead of a meager C-."

Hot Sellers for 2008 Holiday Season

For Girls: Barbie, Disney Hannah Montana, Bratz, Nintendo Wii, other video games, Elmo, Disney High School Musical, Disney Princess, American Girl

For Boys: Video games, Nintendo Wii, LEGO, cars, Transformers, Elmo, Star Wars, Hot Wheels, remote controlled vehicles, Xbox 360

For Adults: Cold weather apparel, books, CDs, DVDs, video games, Blu-ray DVD players, gift cards/certificates, jewelry and accessories

About the Retail Council of New York State:

The "Voice of Retailing" in New York state, the Retail Council represents thousands of member stores of all size and variety. The Retail Council offers money-saving group benefit programs and government relations expertise to its members. For more information, please visit www.retailcouncilnys.com.