Retail sales weaken in December but cap record year

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Brad Cheskes, of Chicago, shops at the Macy's on State Street store in Chicago in December. | AP file photo

Updated: February 14, 2012 10:29AM

WASHINGTON — America’s retailers enjoyed a record 2011 and their first $400 billion sales months ever. But the final month of the year was a dud.

Sales eked out a 0.1 percent increase in December, to a seasonally adjusted $400.6 billion.

It was the second straight month that sales topped $400 billion. Revised government data showed that sales in November also surpassed that level.

December’s increase, though, was the weakest in seven months. Excluding volatile auto purchases, overall sales actually fell 0.2 percent. It was the first such drop since May 2010.

Analysts said they still expect consumers to help the economy strengthen further, especially because businesses have stepped up hiring. More jobs mean more people with money to spend.

For all of 2011, sales totaled a record $4.7 trillion. That was a gain of nearly 8 percent over 2010 — the largest percentage increase since 1999.

Part of the reason for December’s weak showing was lower gasoline prices. Those prices reduced sales at gasoline stations. Excluding gas stations, overall retail sales would have risen 0.3 percent in December.

Another factor was heavy discounting during the holiday shopping season. Many retailers said they had to offer cut prices in December to attract shoppers.