Much to the concern of US financial markets, the holiday sales were a big disappointment with consumers not spending as much as was hoped over the holiday period. In fact, the sales this year grew at the slowest pace since the country was in a recession which was 2008.
There are many reasons for Americans not spending but one of the main ones is the usual suspect which is economic uncertainty.
The country is approaching the deadline for the so called fiscal cliff which means that if a solution is not found then there will be massive budget cuts across all government departments and taxes will rise for a majority of Americans.
With a solution or agreement yet to be found, consumers are wary of splashing out incase they are faced with higher taxes in the coming year.
Retail sales this year grew 3 to 4 percent however last year it was 4 or 5 percent.
Australian retailers are also doing it though however the biggest threat to them is the online surge. Stores like Styletread are capturing consumers dollars by offering great prices, excellent conditions and an attractive Styletread coupon.