December retail sales fall 0.1 percent
Retail sales in December took a slight tumble as budget-minded shoppers stayed cautious about spending even during the holidays.
Last month, retail sales fell to $448.1 billion, down 0.1 percent from the previous month, the Commerce Department said Friday. But November sales were revised up slightly: They increased 0.4 percent from a month earlier. The previous estimate was a 0.2 percent rise.
Falling gasoline prices dragged down retail sales overall. And even though people could save money on gas, that failed to translate into significant boosts in consumer spending, which some economists had been predicting.
On Friday, the National Retail Federation reported that holiday sales rose 3 percent to $625.9 billion, below the 3.7 percent growth that was previously predicted.
E-commerce, where sales grew 9 percent to $105 billion during the holidays, has been luring shoppers away from brick-and-mortar retailers.
That may spell trouble because many retailers haul in as much as 40 percent of their annual revenue during the holidays. Department stores such as Macy’s have already said that slower traffic and unseasonably warm weather in parts of the country have led disappointing sales.
