Fed Survey Notes Easing In Retailing ---- Warm Weather Blamed; Discount Stores Show Strong Growth in Sales
WASHINGTON -- Christmas may not be as merry as some retailers hoped.</br></br>As the economy slowed in several parts of the country, retail sales in the past six weeks were weaker than retailers expected, according to the Federal Reserve's latest survey of regional economic conditions.</br></br>There were some bright spots: Discount department stores showed strong growth in sales. And on the day after Thanksgiving, regarded as the biggest shopping day of the year, sales rose modestly from a year earlier. But in the Boston area, for example, most retailers reported that sales were "clearly slowing," the report said. And "Christmas has started slowly" in and around San Francisco, where sales were mixed. In the Atlanta district, sales were flat.</br></br>Some retailers were concerned that consumers may pull back during the holiday season, the report said. But others are counting on more traditional weather conditions to arrive and drive shoppers from the parks back into the malls.</br></br>Retailers also said the tight labor market is making it difficult to recruit and maintain qualified workers for the holiday rush. Some retailers in the Cleveland district said they are paying seasonal employees as much as 25% more than last year.