Consumers 'abandoned' chain stores in December Print
Wednesday, 24 January 2007 07:00 PM America/New_York

Retail sales were up in December 2006 over the previous Christmas, but the big losers in the end-of-the-year holiday shopping frenzy were retail chain stores, according to the survey conducted by America's Research Group (ARG) researcher Britt Beemer, who believes the drop was because of a reaction to chains' political correctness.

Nationwide sales were up 6% overall from 2005 December sales, and comparative store averages grew by 3%. But in ARG's survey of 1,000 shoppers across the country, only five of the 25 retail categories survey showed increases in both the number of shoppers and the amount of their purchases over the previous Christmas.

More consumers said they shopped sporting goods, furniture, musical instruments and jewelry stores as well as outlet malls/factory outlets than in December 2005, and their spending levels were also higher in these stores.

Consumers clearly shifted away from chain stores to independent retailers for Christmas shopping in 2006, said Beemer, the author of two influential Christian retail market studies.

“I believe, and our research confirms, that the reason consumers abandoned the big-box stores in favor of independent retailers is that many of the chains adopted policies of not decorating their stores for the Christmas holidays and would not allow employees to wish shoppers a Merry Christmas,” said Beemer, founder and chairman of ARG.

During the Future of the Industry conference at the end of CBA Advance in 2006, Beemer encouraged retailers and suppliers to make Christmas a major marketing focus to draw consumers.