PURCHASE, N.Y.–Holiday 2008 will go down in the retail record books as one of the worst in decades, according to MasterCard Advisors SpendingPulse, which tracks retail sales.
Retail sales, excluding gasoline sales, fell between 2 percent and 4 percent this holiday shopping season, the report said.
“A difficult economic environment combined with unfavorable weather during the last week of shopping made 2008 one of the most challenging holiday shopping seasons in decades,” said Michael McNamara, vice president of research and analysis for SpendingPulse, in a statement.
E-commerce emerged as an area of “relative strength,” the report said, declining 2.3 percent from the 2007 season. By contrast, luxury sales—excluding jewelry—posted the largest year-over-year declines, sinking 21 percent, compared with 2007, the report said.
SpendingPulse reports on national retail and service sales and is based on aggregate sales activity in the MasterCard payments network, adding in estimates for all other payment forms, including cash and check.