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December sales beat forecast; up 2.9 percent

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Overall same-store sales for 30 retail chains increased 2.9 percent in December, far outperforming a 3.6 percent decline a year earlier, CNNMoney.com reported.

And though consumers turned out last month to boost crucial holiday sales, retailers had to wait longer for them, as many shopped on their own terms and waited to find the deepest discounts in stores.

Thomson Reuters, which tracks monthly same-store sales for 30 chains such as Costco, Target, Gap and J.C. Penney, had initially forecast an overall sales increase of 2 percent for the month.

December’s performance was also an improvement from a small 0.5 percent same-store sales gain in November and the best monthly sales performance for the group since a 3.4 percent gain in April 2008.

“Retailers were already planning for a modest holiday sales season, but consumers spent on the higher end of expectations,” said Chris Donnelly, a retail analyst with Accenture, a consulting firm. “This means that retailers’ profits will be good.”

The critical November-December sales period can account for 50 percent or more of retailers’ sales and profits for the entire year.

Despite December’s improvement, Donnelly wouldn’t say that consumer spending has changed direction. “Consumers still face a significant headwind in the nation’s high unemployment rate,” he said.

“And although sales were up in December, they were up against a very bad year in 2008,” he said. “So retailers also benefited from easier comparisons.”

Final sales figures for the 2009 holiday season will be announced next week. According to the National Retail Federation, 2009 holiday sales are expected to decrease 1 percent this year, compared to a 3.4 percent decline the prior year.