Comparable store sales for US retailers during November to December showed small or moderate increases. Macy's shares plunged almost 20 per cent, while nearly every major retailer was pulled down. Comparable sales for Target grew 5.7 per cent over the holiday, while sales growth for Kohl’s was 1.2 per cent.

The holiday shopping season opened with high expectations owing to robust consumer confidence amid a strong employment market, relatively low gasoline prices and a boost from tax cuts. Traditional brick-and-mortar retailers invested in heavily beefing up their online platforms and offering incentives to lure buyers, such as free shipping during the peak holiday season. At the same time, these companies spent heavily to improve the in-store experience, hiring consultants to help beautify the surroundings and in many cases employing more workers during the peak festive season.

But retailers still have not found a winning recipe for the transition to the e-commerce era. Though consumers had more money to spend, and they spent it, the cost of doing business got higher. Expenses have become a problem because as more of the business moves online people will not pay for the shipping. Companies like Macy’s, JC Penney and Gap have shuttered stores in recent years, while Toys R Us went out of business.