retailers Shopping trends lead to uneven fortunes

Associated Press

NEW YORK

The financial strains and shifting shopping habits of Americans have led to uneven fortunes for retailers.

Traditional consumer companies such as Wal-Mart and Mattel have continued to struggle as Americans spend more cautiously in the uncertain economy. Meanwhile, Amazon.com has flourished as shoppers increasingly buy online rather than head to stores.

The trend was evident during the pivotal holiday shopping season, a time roughly from November through December when many retailers can make up to 40 percent of their annual revenue. Overall, government figures show that spending during October through December rose at the fastest clip in three years.

But exactly where — and how — Americans spent their money during the final months of the year shifted. Fewer people were in and out of stores during the holiday season, but more were shopping online.

Online shopping rose 10 percent to $46.5 billion in November and December, according to research firm Comscore. Meanwhile, sales at stores rose just 2.7 percent to $265.9 billion, according to ShopperTrak, which tracks data at 40,000 stores in the U.S. And the number of customers in stores dropped 14.6 percent.

“Consumer behavior evolved quickly, as retail foot-traffic fell, while online purchases grew,” said Mattel’s CEO, Bryan Stockton, in a call with investors Friday.

Mattel on Friday reported results for the fourth quarter — which included the holiday shopping season — that missed both analysts’ estimates and the company’s own expectations.