The magnanimous discounts offered by retailers finally led the consumers to loosen their purse strings and made them spend without restraint.
"It was like a blizzard. It was a great way to end the year, "local store owner Valerie Lucas sums up the sentiment of all retailers.
Sales beat expectations
On an overall basis, the retail industry registered a 2.9 increase in sales in the month of December as compared to the comparative period last year.
The results are based on sales at stores which are operational for at least a year. Termed as same-store sales, it is considered as an important measure of a retailer's health.
Not only were sales better off than last year, they also beat analyst’s expectations who had pegged the increase at 2 percent.
The achievement in the last month of December marks the largest December gain for retailers since 2006 and also the finest month of performance since April 2008.
"The consumer came out, the consumer responded -- it's what I'm calling an adequate holiday. You can basically say that we're off the critical list," said Marshal Cohen, chief industry analyst at market research firm NPD Group.
December performance provided the much needed respite to the sagging retail industry which had been reeling under severe economic recession. In fact, the retail industry had witnessed the worst holiday season in decades a year earlier.
Backbone of the economy
Cynics may aver that the gains were recorded primarily because Dec. 2008 was miserable. However, most retail experts claim that the year end spurt in sales will provide the momentum and will enable the industry pass quickly through the initial stages of a turnaround.
The revitalized retail sector, which hitherto had been marked by bankruptcies, closures and lay offs, could help the economy as a whole.
"2010 will build upon the recovery that began at the tail end of '09 and will be driven in part from some of the things that have been a drag on the economy and the consumer becoming less significant," said Michael Niemira, chief economist at the International Council of Shopping Centers.
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