ShopperTrak’s retail traffic index (SRTI) today reported that total U.S. foot traffic for Christmas week (12/21 – 12/27) fell 4.9 percent as compared to the same period in 2007, while the company’s retail sales estimate (NRSE) reported a strong 21.2 percent retail sales increase for the week.

While year-over-year traffic fell, the downturn was slight compared to the dramatic traffic declines retailers have experienced so far this season. On a week-over-week level, shopper traffic showed a significant increase as the 2008 calendar shift allowed more of a boost from procrastinating shoppers looking for deeply discounted items and last-minute deals on Monday, Tuesday and Wednesday. Additionally, December 26 – a day ShopperTrak anticipated would be the third best performing day this season – provided a much needed traffic lift as consumers took advantage of post-holiday sales and began redeeming gift cards. Total U.S. foot traffic for the week ending December 27 versus the previous week ending December 20 rose a strong 15.5 percent.

ShopperTrak’s NRSE reported both yearly and weekly sales showed increases last week as shoppers responded to both pre- and post-Christmas sales and promotions throughout the week. The 2008 calendar shift significantly helped year-over-year performance (+21.2 percent) as more consumers shopped Monday, Tuesday and Wednesday in 2008 as opposed to the days leading into Super Saturday in 2007 (December 20 & 21). But, last week’s strong week-over-week performance highlighted the fact that many consumers were waiting for discounted items and exploded onto the scene just prior to Christmas – and on December 26 – to redeem gift cards and search for post-holiday sales. Sales for the week ending December 27 versus the previous week ending December 20 increased 12.4 percent.

“Annually, we see a boost just prior to Christmas from procrastinating shoppers and that trend continued last week despite the various economic pressures on the American consumer,” said Bill Martin, co-founder of ShopperTrak. “Both the traffic and sales results of this past week indicate efficient shoppers were focusing their retail visits to stores offering value for their money with deeply discounted items, which we’ve seen throughout the 2008 season.”

Despite Christmas week’s strong performance, Mr. Martin indicated ShopperTrak’s holiday season forecast has been adjusted to a 2.3 percent retail sales decline with a significant 16.0 percent traffic decline. Initially, the company predicated a 0.1 percent retail sales increase with a 9.9 percent dip in total U.S. foot traffic.

“We expect retail performance will dive over the next couple of weeks as retailers stop offering deeply discounted items and sales and traffic levels return to seasonal low points following the holidays,” said Mr. Martin. “Looking ahead, retailers will most likely need to get creative to avoid the struggles most analysts have predicted in Q1 as the current economy continues to influence consumer behavior and shopping patterns.”

The SRTI is generated from a carefully drawn sample of more than 50,000 retail and enclosed mall locations throughout the United States. The product is a set of six calculated indices for select segments of the retail industry that compare current week mall or store traffic to a baseline traffic figure from a fixed week on the NRF calendar. The SRTI is priced by individual segment  www.shoppertrak.com