Sears said it would close dozens of Sears and Kmart stores after seeing sales at its existing locations drop 5.2 percent from the beginning of the quarter through Christmas. Its shares plunged 26 percent on Tuesday.
The announcement comes two weeks after Best Buy Co Inc
Success stories, particularly at Macy's and Walmart, show that some retailers are benefiting from recent overhauls and the right mix of controlled holiday season discounts.
To sum up the whole season, I would say extremely focused on bargains, that's where the consumer's mindset is, and the retailers generally, overall, delivered pretty compelling bargains, they gave the consumer a reason to shop, said B. Riley & Co senior analyst Jeff Van Sinderen.
While it is too early to tell, analysts said that the season's promotional prices largely seemed to be in line with what retailers set out to do in order to entice shoppers.
Macy's surpassed rivals such as J.C. Penney Co Inc
I see Macy's as the market-share winner, said independent retail analyst Brian Sozzi, who said shoppers did not see slash-and-burn discounting at the department store chain.
They are the destination place among department stores, he said.
For Walmart, this season was a chance to prove that returning to its historic strategy of low prices on a wider variety of goods would bring shoppers back to the world's largest chain after two tough years.
Realizing that times are tough for its shoppers, many of whom do not have credit cards or bank accounts, Walmart brought back layaway in mid-October. That move hurt competitors.
Layaway sales, where items are put aside for customers until they fully pay for them, fell at Kmart, while Target Corp
Retailers are expected to ring up $469.1 billion in holiday season sales, or a rise of 3.8 percent from 2010, according to the National Retail Federation. [ID:nL1E7NEB2D]
Meanwhile, U.S. consumer confidence rose to an eight-month high in December, the Conference Board said, suggesting that Americans have a brighter take on the economy heading into 2012.
The S&P retail index <.RLX> was up modestly on Tuesday, roughly in line with the broader S&P 500 index <.SPX>.
In general, analysts said that retailers did a good job of having the right level of inventory in place, which meant there was not a need for major panicked discounting.
But it appeared that few retailers predicted just how mild the weather would be so far in most parts of the country, leading to a glut of warm coats, sweaters and other items.
That could put pressure on companies such as winter outerwear makers VF Corp
While the economic tone seems a bit better, the lower-end consumer is still most constrained and thus we think investors are still best positioned in those companies targeting higher-end consumers, such as Tiffany & Co
Lakner's favorite small and mid-cap stocks are Zumiez Inc
Among chains catering to teens, American Eagle appeared to have better traffic consistently throughout the season, while Abercrombie & Fitch Co
American Eagle's success has come at the expense of the higher priced Abercrombie, which got hammered, said Johnson.
Another teen player, Aeropostale Inc
Lakner also called out Children's Place Retail Stores Inc
(Reporting by Jessica Wohl in Chicago and Phil Wahba in New York. Editing by Gunna Dickson)