Retail results for the 2006 shopping season were a mixed bag, with some stores, particularly in the luxury sector, reporting a better-than-expected season and others reporting disappointing results. The International Council of Shopping Centers-UBS sales survey showed an overall 2.8 percent gain for November and December, slightly below original forecasts, but also a touch higher than revised projections. December sales were also lower than the year-ago figures according to a survey from Retail Forward Inc. The Columbus, Ohio-based tracking and consulting group found December sales rose 2.8 percent, down from 3.6 percent in December 2005. “Besides a shift to online shopping, the sales numbers were often hurt by the step up in promotions as the holiday progressed,” said Retail Forward KnowledgeBase Director Frank Badillo in a statement. “Retailers sold a lot of product, but it often wasn’t at the price points they hoped for.” Other analysts noted that the promotions offered during this holiday season may well impact the earnings stores report later this year. And some retailers have already cut their profit outlooks. Analysts also noted that sales results were impacted by the increasing popularity of gift cards. Those sales are recorded only when the gift cards are redeemed. Among those who disappointed analysts, Target Corp. came in with a 4.1 percent sales gain, versus a 4.5 percent estimate; Federated Department Stores Inc., which owns Macy’s among others, reported a 4.4 percent gain, versus a 5.5 percent estimate from analysts and Limited Brands logged a 4 percent increase, versus 9.4 percent projected by analysts. Nordstrom reported a 9 percent gain, well exceeding forecasts of 4.3 percent, and J.C. Penney Co. also did somewhat better than 2.4 percent estimates, ringing up a 2.6 percent gain in sales.
