Shopping 26 Dec 2006 03:27 pm
Visa is disappointed with Christmas shopping numbers. They failed to meet even their reduced expectations:
Nevertheless, holiday spending is on track to post an increase of about 6.5%, Best said. That’s even weaker than [Visa USA's chief economist, Wayne] Best had suspected earlier this month, when Visa said holiday sales would likely fall short of its original projection for a 7.5% gain. Holiday sales had increased 8.3% a year earlier, according to Visa’s data, which tracks purchases made with its credit cards – roughly 17 cents out of every dollar spent in the U.S.
The big items were personal electronics, small home furnishings, and appliances.
Frank Barnako reports Amazon.com had its best Christmas ever with lots of iPods going out to customers.
For retails the season isn’t over yet. Until the kids go back to school they will be going to the stores to spend their gift cards while mom and dad bring back returns. Although those returns may be tougher to come by.