NEW YORK–Retailers posted weak December sales, capping off one of the poorest holidays at retail in years.
Retailers up and down the food chain resorted to heavy-duty promotions, which drove traffic but ate into margins, merchants said.
Although Walmart continued to outpace its peers and managed to eke out a 1.7 percent comparable-store gain, the retailer still fell short of its estimates.
“Due to the difficult economy and severe winter weather in some regions, the holiday season was more challenging for retailers than expected,” said Eduardo Castro-Wright, vice chairman of Walmart Stores, in a statement.
Comp-store sales at Walmart’s archrival Target fell 4.1 percent.
“During the month, we reduced prices to gain market share,” said Gregg Steinhafel, president and chief executive officer, in a statement. “These markdowns … will put additional pressure on our profitability in the fourth quarter.”
Still, discounters fared better than department stores in December, continuing an ongoing trend.
Sears’ comp-store sales sank 12.8 percent (comp-store sales at its Kmart discount store division slipped 1.1 percent); J.C. Penney’s fell 8.1 percent; while Macy’s dropped 4.0 percent.
Kohl’s fared better with a 1.4 percent comp-store sales decline.
Even the warehouse club channel, which has been the darling of the retail sector of late, slipped.
Costco’s December comp-store sales fell 4 percent; BJ’s comps inched up 1.6 percent; while Sam’s Club’s comps rose 2.8 percent, but fell below expectations. Home products were among the poorest-performing categories at Sam's Club, the company said in a statement.