Holiday Sales Up in Line With Expectations

NEW YORK — U.S. retailers’ sales rose in line with expectations during the first weekend of the holiday season as shoppers sought bargains at Wal-Mart Stores Inc. and other discount chains and took advantage of steep markdowns offered at department and toy stores.

Sales at stores open at least a year rose 4.4% on Friday, according to First Data Corp.’s TeleCheck unit, which surveyed 13,000 of its 200,000 locations. That’s in line with forecasts for an increase of as much as 5% for the 28-day holiday shopping season, analysts said.

Shoppers were quick to line up for special promotions and discounts offered on Friday morning by malls and retailers to kick off the holiday season. On Saturday, though, consumers generally arrived in stores later in the day and shopped mainly at discount chains such as Kmart and Dayton Hudson Corp.’s Target that offered low prices on brand-name goods or those specialty and department store chains that slashed prices.

Thanksgiving weekend generated about 9% of holiday sales last year, making it the fifth-biggest shopping period, according to the International Council of Shopping Centers. The busiest shopping day is usually the Saturday before Christmas, the ICSC said.

TeleCheck, which forecasts same-store sales by measuring the amount of merchandise paid for by check, had predicted that holiday sales this year will increase 3% to 5%. About a third of all retail purchases in the U.S. are paid for with checks, said William Ford, TeleCheck’s senior economic advisor.

Sales might beat forecasts if consumers remain upbeat, analysts said. Last month, consumer confidence rose more than expected, after the Federal Reserve cut interest rates for the third time in two months and the Dow Jones industrial average surged 20% during 45 days.

On Friday, the average amount consumers spent on each check rose 3.7% to $93.77 from $90.42 last year, TeleCheck’s Ford said.