“(Reuters) – Some major U.S. retailers had a tough December, with chains like Target and Family Dollar feeling the pinch as consumers were cautious in their holiday spending.
The economy took a toll on shoppers in the most important quarter of the year for retailers. The holiday season was never expected to be stellar, but even the single-digit growth anticipated by chains and analysts came under pressure as Superstorm Sandy, the ever-present headlines about the “fiscal cliff” and the Connecticut school shootings affected consumers’ moods.
“The consumers’ confidence is off a bit, and I don’t think you can point to a single individual thing. It’s a culmination of things that hit their psyche,” said Madison Riley, managing director of retail consulting firm Kurt Salmon.
Among the chains reporting December sales at stores open at least a year on Thursday, Costco Wholesale Corp stood out with growth that topped expectations. Limited Brands Inc’s sales rose less than anticipated, marking a rare miss for the owner of the Victoria’s Secret chain.
Target Corp’s same-store sales were essentially flat, while analysts anticipated a 0.8 percent increase, according to Thomson Reuters I/B/E/S.
Target said fourth-quarter earnings should meet or somewhat exceed the low end of its forecast. It said the number of transactions at existing stores slipped in the quarter, while the average transaction size increased. Food was its best seller.
Overall, analysts looked for 3.3 percent same-store sales growth for December across 17 chains, down from 4.2 percent growth in December 2011, according to Thomson Reuters I/B/E/S.
Chains also had a somewhat rough November, with same-store sales up a disappointing 1.6 percent.
Still, Kurt Salmon’s Riley predicted that if the upcoming debt ceiling debate goes better than the Washington wrangling to avoid the cliff, there could be a bigger uptick in consumer spending in 2013.
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