Analysts: Holiday Retail Sales Lackluster
Retailers rang in lackluster sales during the holiday shopping season, falling below state and national groups' expectations, according to retail analysts.
Early reports indicate 0.7 percent to 1 percent growth over last year for the period between Thanksgiving and Christmas, according to the Retailers Association of Massachusetts.
The National Retail Federation predicted a 4.1-percent increase over last year, while the Massachusetts retailers group anticipated a 3.5-percent increase in holiday retail sales in the state.
Retailers hope the final week of the year will boost sales slightly as shoppers head back to the stores to exchange gifts, shop with gift cards and take advantage of sales.
"The time between Christmas and New Year's is one of the busiest shopping weeks of the year," said Ryan Kearney, general counsel for the Retailers Association of Massachusetts. "We are hoping there is going to be more of an increase over last year."
Retail analysts think shoppers held back because of nervousness about the economy due to pending tax increases and federal spending cuts if Congress doesn't act before January to avoid the so-called "fiscal cliff."
"People have less confidence about the economy now," Kearney said.
Meanwhile, the state is facing a projected $540-million revenue shortfall in its fiscal 2013 budget. Lower than expected retail sales could play a part in that shortfall, analysts said. "Any dollar you lose, you are losing that 6.25-percent sales tax," Kearney said.
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