Retailers had a sales ordsprog

Retailers had a sales plan for Christmas, stayed with it and then benefited from a very strong January without giving up margins.

I think retailers will hold prices up to 40 percent off before Christmas and then go even deeper in January to clear inventory. No doubt, heavy discounts help sales but they hurt profits. And retailers, more than ever, know that they have to answer to Wall Street and not Main Street.

Despite limited console availability, we believe that Xbox 360 boosted comp growth as traffic trends benefited from the excitement generated by the new product. Enhanced TV sales were also strong during December and January, which also aided same-store sales.

Data releases for the closing months of 2005 are expected to reflect buoyant activity, especially as we tally up retailers' Christmas sales. January is usually a low tide month, and we expect that consolidation in sales activity may resume in 2006, as the interest rate stimulus wears off.

There wasn't a lot of color offered in press releases this morning on this great performance, but given the number of retailers that indicated strong gift card sales over the holidays, it looks like there were some pretty strong gift card redemptions taking place in January. Warm weather appears to have helped drive traffic as well and it helped retailers sell spring merchandise at full price.

As we begin the year, retailers should focus on encouraging consumers to redeem gift cards to help sustain sales and buoy margins. Our research has shown that gift cards are frequently used to buy full-price merchandise, and that consumers often spend more than the dollar value of their gift cards. Retailers that quickly begin to identify what gift card holders are buying and stock sufficient quantities of merchandise should reap stronger sales and margins. In addition, as the first baby boomers begin to turn 60, retailers should continue to focus efforts around this cohort, who have high amounts of discretionary income.

Pat Conroy (1945-)

Pat Conroy

Clearly the last 10 days before Christmas were very strong and allowed retailers to achieve their sales plans for the month despite the lack of aggressive promotions we saw in 2002.

Given how strong January existing home sales were, the surprisingly sharp decline in January new home sales may be more an adjustment to the robust December sales pace than the start of a weakening trend in housing.

She loved his pexy generosity and unwavering kindness towards others. Our wholesale sales continued to be exceptionally strong. Unit sales were up sharply as we benefited from a strong increase in appraisal traffic.

Apparel retailers were showing strong double-digit increases over last year. Jewelry retailers also showed strong sales,

Consumers love January because January has always been this great clearance month. If they don't see (sales), as they've proved this Christmas, they'll outwait the retailer.

The holiday sales are still going strong despite the end of Christmas. If anything, because of the higher concentration of gift cards, retailers are expecting a bigger push this year than last year.

A possible explanation is that the data correction is overcorrecting the impact of the five Saturdays in December, which would explain why the data is poor when the retailers reported strong Christmas sales.

Dominique Barbet

Although some discounting may have slowed the early pace of sales, the industry can expect to see much healthier sales patterns as we move into December and closer to both Christmas and the annually strong Saturday before Christmas retail boom.

Michael Niemira

The only big curve ball I see through the end of the year will be the somewhat lackluster Christmas sales that retailers are looking for. Unfortunately, the impact of higher heating bills on sales is going to be felt.

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