Business

How the pinch stole Christmas (2012)

Investors got a lump of coal yesterday after retailers rang up one of the worst holiday shopping seasons since the country was mired in recession.

The sales bump for the eight weeks leading up to Christmas was just 0.7 percent, compared with last year’s 2 percent rise.

It’s the weakest since the 5.5 percent decline noted in 2008, according to MasterCard’s SpendingPulse.

Consumer and retail stocks slid on the early report, in particular luxury brands that rely on discretionary spending. Coach fell nearly 6 percent to $54.13, Saks dropped 3.8 percent to $10.22 and Ralph Lauren shed 3.3 percent to $146.03.

Lower-priced chains such as Walmart and Gap fared better, while bargain-conscious department chain JCPenney bucked the industry with a 4.3 percent jump to $20.75.

Sandwiched between the lost weeks of Hurricane Sandy and Washington’s budget impasse, many shoppers basically skipped the aisles this season, experts said.

“The broad brush was — Christmas wasn’t all that merry,” said analyst Kim Forrest at Fort Pitt Capital Group.

Even the well-heeled kept their wallets closed, dashing hopes that luxury retailing might again carry the industry’s holiday hopes.

New York’s retail economy got hard hit by skittish high-end shoppers because about 20 percent of the city’s retail sales come from luxury goods.

Experts believe consumers are holding out for steep markdowns from merchandise unsold in stores.

Discounts began popping up yesterday in many areas, with Barnes & Noble offering markdowns of 50 percent in stores. Ann Inc.’s Loft stores and Bloomingdale’s promoted discounts of up to 75 percent.

Some bright spots came from online shopping. On Christmas Day, online sales soared 22.4 percent, outpacing a 16.4 percent jump in 2011, according to IBM Digital Analytics Benchmark.