The final reports from major retailers on the 2007 holiday season are in, and they confirm initial indications (see 'Lackluster Holiday Sales') that the American consumer is looking for ways to spend less as we enter the new year. Most specialty retail chains reported lower or weaker than expected same store sales for the 2007 holiday season, and lower priced retailers fared better, in general, than full price stores. The big winner was Wal-Mart, which cut prices early and often (see 'Wal-Mart Starts War Early'), and had same store sales rise 2.7%, besting #2 rival Target, which saw same store sales rise .6%.
The two major book chains, which also reported holiday sales last week, were split as far as sales increases, but united in having lower profits during the holiday season than expected (see 'Borders Up, Barnes & Noble Down').
The weak holiday retail sales are seen as an indication that weaker home prices and the decline in the housing market are starting to have an impact on consumer spending, perhaps leading the