An ominous warning from Wal- Mart dampened Wall Street’s enthusiasm for retailers Monday, but other signs point to a healthy holiday shopping season, particularly in Colorado and the West.
The world’s largest retailer issued a warning this weekend that sales at stores open at least a year would be down 0.1 percent for November. Wal-Mart, Colorado’s largest employer, is due to report its November same-store sales Thursday, and the monthly drop would be the first such decline since April 1996.
Shares of Wal-Mart fell 2.7 percent to close at $46.61, leading declines among retail stocks generally. The drop at Wal-Mart has fueled speculation that, despite what appeared to be an initially strong weekend, holiday sales could falter.
But other data released Monday suggested that the all-important holiday retail season is off to a strong start.
Retail spending totaled $14.66 billion Friday and Saturday, according to data released Monday by ShopperTrak RCT Corp. Combined sales for the two days were up 3.4 percent from 2005. Friday sales were up 6 percent, while Saturday sales were down 0.4 percent.
Members of the Colorado Retail Council also reported a strong weekend.
“The preliminary results are very positive,” said the group’s president, Christopher Howes. “Some retailers are actually over their forecasts by 5,6 or 7 percent. They’re very optimistic about the way the holiday season is starting.”
The outlook for department stores appears particularly rosy, he said.
According to data released by the National Retail Federation, shoppers in the West spent more than the national average, spending an average of $418.70 over the weekend compared with the national average of $360.15.
Nationally, electronics and appliance retailers were among the winners, with average receipts in that sector gaining 8.7 percent over 2005, according to Visa USA. The company tracks trends based on purchases made with its cards, which represent 17 percent of retail spending.
Many weekend shoppers concentrated on big-ticket items such as flat-screen televisions, appliances and gaming systems that were deeply discounted, said Wayne Best, senior vice president of economic analysis for Visa USA.
Buyers tend to purchase those items for themselves rather than as gifts, indicating that holiday- gift purchases will occur later in the season as customers hold out for further markdowns, he said.
“Savvy consumers know that retailers put thing like sweaters on sale at the end of the season, and they are waiting for those sales,” Best said.
The general-merchandise sector showed some softness, while specialty-apparel retailers fared well, Best said.
The National Retail Federation data showed that discount stores remained the most popular shopping destination but lost some of their lead. Nearly 50 percent of shoppers surveyed said they visited a discount store over the weekend, down from 60.7 percent in 2005.
The federation is maintaining its forecast that holiday retail sales will be up 5 percent this year. But many customers who were shopping last weekend said they intend to reduce their spending this year. Their reasons ranged from impending job losses to a greater focus on bargains.
Lisa Synn, 46, estimated that an early round of bargain-hunting Friday morning would help cut her tab for the holidays from the $1,000 she spent last year to about $600.
“I plan to shop smarter,” she said.
Andrea Wilson, 37, also plans to spend less this year than last.
“We spent over $100 a kid last year. This year will be less than $100 a kid,” she said. “We have four children, and we have learned that the more we spend and the more they get, the less they enjoy it.”
Staff writer Tom McGhee contributed to this report.
Staff writer Kristi Arellano can be reached at 303-954-1902 or karellano@denverpost.com.
$14.66 BILLION
National retail sales Friday and Saturday, up 3.4 percent from the same period in 2005, according to ShopperTrak RCT
$8.96 BILLION
National retail sales Friday, up 6 percent from the same day in 2005 (Saturday business was off 0.4 percent from that day in 2005)
9.6%
Portion of holiday sales on the post-Thanksgiving weekend in 2005, up from 9.2 percent in 2004, according to International Council of Shopping Centers
