NORTH PLAINFIELD, NJ-Holiday sales weren't all they might have been, retailers told Levin Management in its most recent survey of store managers. Overall, though, retailers said 2012 was a more than decent year.
Despite continued economic uncertainty, the growing impact of e-commerce on brick-and-mortar stores, and superstorm Sandy's hit on the northeast in late October, 65% of managers surveyed said their store sales were equal to or higher than in 2011.
North Plainfield-based Levin regularly polls the retail managers within its 90-property, 12.5 million-square-foot shopping center portfolio.
Levin's survey results were in line with national indicators. Earlier this month, the U.S. Census Bureau reported December retail and food services sales were up 4.7% in December over December 2011; total retail sales for 2012 were up 5.2 % from 2011.
“It appears that 2012 was a better year for retailers in our portfolio and across the board, which is good news,” said Levin's president, Matthew K. Harding. “While the growth remains modest, things are headed in the right direction.”
The post-holiday report was not quite as upbeat as last year's survey when 73.1% reported 2011 holiday sales at same or better levels than 2010. Nationally, the same was true: The National Retail Federation said 2012 holiday retail sales increased 3% from 2011, but came in below projections of a 4.1% hike.
Black Friday and Thanksgiving weekend provided the biggest sales boosts, according to Levin's poll, with nearly twice as many retailers reporting peak sales occurring during that period as did the year before. A full 80% said that their Black Friday/Thanksgiving weekend sales were as good as or better than expected.
“It appears that retailers' aggressive marketing efforts to rejuvenate Black Friday as a key holiday sales period are working,” Harding said. “However, after this encouraging start, sales seemed to drop off to levels lower than expected. Sluggish economic growth and 'fiscal cliff' worries among many consumers likely played a large role in keeping spending in check.”
Hiring trended sharply down from last year: 27% of survey respondents added staff for the holidays (compared to 31% in January 2012), and only 13% plan to retain holiday employees as permanent staff compared to 55% last year.
For the first time, there were more respondents to Levin's annual survey who said e-commerce had affected their holiday sales than those who said it didn't: 32% compared to 25%.
Also, the large majority of retailers -65%- said the superstorm had a negative impact on sales.
Going forward, though, optimism remained strong, with only 9% expressing pessimism about near-term performance.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.