Preliminary sales results for the 2008 holiday season are in, and the news is even worse than expected. Retail sales for November and December dropped 4.4% versus 2007, well below forecasts. This figure is based on preliminary US Census Bureau estimates for November GAFO sales growth of -4.3% and December GAFS sales growth of -4.6% versus the same months last year. This is the bleakest holiday performance in 40 years of collecting data and the first time that growth has been negative during the holidays.

With the 2008 holiday season over, we turn our attention to the new year. We close our final newsletter of the season with a brief discussion of what to expect in 2009. We also offer suggestions on some of the priorities retailers should consider as they head into what is sure to be a difficult year... or more.

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