Holiday Retail Sales Rose 3%

By Suzanne Kapner 

Retail sales for the holiday period increased 3%, less than the 3.7% the National Retail Federation had predicted, according to the trade group.

The growth is the slowest since 2013, when sales in the year-end period rose 2.7%. It is also far short of last year's results, when sales rose 4.1%.

This season was marked by challenges for retailers, including unusually warm weather that damped demand for winter apparel and other gear and a slowdown in spending by foreign tourists due to the strong dollar. Stores also had to contend with falling traffic at their brick-and-mortar locations and surging sales online.

The NRF said e-commerce sales increased 9% to $105 billion, more than the 6% to 8% growth it had predicted.

Some retailers have already reported that their sales for the period fell well short of expectations. Macy's Inc. warned of its worst holiday sales since 2008 and said it would cut thousands of jobs. It blamed the shortfall on the warm weather. Gap Inc. said December sales fell 5% from the year earlier.

Several large retailers have yet to report their results, including Wal-Mart Stores Inc. and Amazon.com Inc. Wal-Mart said Friday it planned to close 154 stores in the U.S., part of a broader plan to close 269 stores around the world.

      But not all retailers had a tough holiday.   L Brands Inc., owner of mall stalwarts such as Victoria's Secret and Bath & Body Works, posted an 8% jump in sales at existing locations, and said last month was its "best December ever." 

Write to Suzanne Kapner at [e-mail]

(END) Dow Jones Newswires

January 15, 2016 10:13 ET (15:13 GMT)

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