Retailers to face an unhappy new year

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Now that Christmas is over, retailers are looking ahead to 2009 -- and for some, that could mean a year filled with store closings and other desperate measures to stay afloat. Some big names will join chains such as Mervyn’s and Linens ‘n Things Inc. by exiting the shrinking market altogether.

‘Overall, it was a very weak holiday season and it’s going to flow over to the first half of next year,’ said Jeff Mintz, an analyst with Wedbush Morgan Securities. ‘Those that survive will be in a better position because the competition will be reduced, but for right now it’s a very difficult time to be a retailer.’

If you’re a consumer with money to spend, retailers’ woes could mean deals for you: Many chains have vowed to keep the bargains coming well into the new year.

Here’s how the holiday shopping season fared overall, according to data tracker SpendingPulse, a unit of MasterCard Advisors:

• Retail sales fell 5.5% in November and 8% in December through Christmas Eve compared with a year earlier.
• Many categories, including footwear, apparel and electronics, registered double-digit declines from Nov. 1 through Dec. 24.
• Luxury goods did especially poorly, with sales falling 34% over the same period last year.

-- Andrea Chang