Holiday shoppers came out to spend last month

Associated Press

NEW YORK

Shoppers had retailers’ registers ringing in November, getting the holiday season off to a roaring start.

Retailers on Thursday reported revenue figures that topped expectations and showed the second-biggest monthly percentage gain in four years, according to one measure. And the reports raise hopes spending might remain strong for the rest of the holiday season and help the economy recover.

But it’s still early in the holiday game, and 40 percent of sales typically come in the last 10 days before Christmas. Analysts expect stores will need to keep up the deep but well-planned discounts. The hangover from the Great Recession hasn’t gone away. Shoppers still are hungry for deals and sticking to a budget.

The International Council of Shopping Centers’ index showed a 5.8 percent gain in revenue at stores open at least a year for November, much better than the 3 percent to 4 percent increase expected.

The increase was the biggest since March, when spending tied to an early Easter resulted in a 9 percent gain. Otherwise, it was the biggest gain in September 2006, when it registered a 6.2 percent increase.

Revenue at stores open at least a year is a key indicator of a retailer’s health because it excludes sales at stores that open or close during the year.

“Discretionary spending looks to be making a comeback,” said Ken Perkins, president of RetailMetrics, a research firm. Retailers’ profits appear to be safe, and inventory is at appropriate levels heading into December, he said. But he added that shoppers still are driven by bargains.

November’s results are being compared with weak spending over the last two years. But Mike Niemira, chief economist at the International Council of Shopping Centers, said that plenty of holiday discounting, which started as early as late October, and a recovering economy are helping to boost spending.

The arrival of cold weather after two months of unseasonable warmth helped sales of cold-weather items such as coats, which had been piling up on stores’ shelves.

The retail gains were broad-based, showing that many types of shoppers were in the mood to buy, if the product and price were right.

Stores reporting gains that topped Wall Street expectations included Costco Wholesale Corp., Target Corp., Victoria’s Secret and pricey teen retailer Abercrombie & Fitch.