According to SpendingPulse, a macro-economic report offered by Mastercard, retail and service sales from Nov. 1 until Dec. 24 showed retail sales down between 5.5 percent and 8 percent. Half of the decline in overall sales can be attributed to the 40 percent drop in the price of gas compared with December 2007. Excluding gasoline, sales were down 2 percent to 4 percent.

Their report concludes that 2008 was “one of the most challenging holidays shopping seasons in decades” with very few segments showing any strength.  E-commerce declined a meager 2.3% compared to apparel (19-21%) and electronics (26%), although I have to wonder how many of these numbers have to do with the declining prices on electronics and clothing in general.  The American consumer has come to expect 25% off day-to-day with sales starting at 50% or more, and it would seem that, at least for now, some retailers are going to respond or perish.

For our family – I would suggest that we spent moderately less this year, including less on our friends, co-workers, and charities that we’ve supported in the past.  Part in response to changing market conditions and partly because the media, the stores we shop in, and the services that we use are approaching things differently than in years past.  It’s as if they’re saying, “well, we know your money is short, so we expect you to buy less.”  Retailers are expecting to take a beating and it would seem as though they’re even asking for it.

Next year, I want fanfare, decorations, full-priced fare, and a season worthy of spending my hard earned money.  It’s about more than just gifts – it’s about the season, the spirit and the excitement of the holidays.  If retailers aren’t going to give consumers that excitement – I expect consumers aren’t going to give them their hard earned dollars.

Ranter