Results for sales during the US holiday period are in and it looks like it was another down year with sales rising only 0.7%. This compares with a rise of 2% during the same period last year. The sales figures are based on both in store purchasing as well as online sales.
The main attributing factor to this slowdown is the uncertainty surrounding the so called ‘Fiscal Cliff’ which the US is approaching at the start of 2013. Should an agreement not be reached by the policy makers before this date, then automatic spending cuts and tax hikes will take affect.
This means people in all tax brackets will see less money in their pay packets as the current tax cuts expire. There will also be huge cuts across government departments which will be difficult to manage for those implicated.
The holiday sales were already disrupted a great deal by Hurricane Sandy which meant that those wanting to shop couldn’t.
In Australia, retail sales had a late surge however online stores still seem to be performing extremely well. Stores like Styletread are leading the market with great offers and their Styletread coupon.