Holiday Sales, Retail | featured news

Best Buy's holiday sales fell despite a surprisingly resilient showing in the U.S., and the consumer-electronics retailer said its cash flow continues to weaken.

Retail sales barely rose in December, but the gain was enough to lift sales to a record level for 2011. It marked the largest annual increase in more than a decade. Sales inched up 0.1 percent in December to a seasonally adjusted $400.6 billion, The Commerce Department said Thursday. It was the second straight month that sales have topped $400 billion. Never before had monthly sales reached that level.

Electronics retailer Best Buy reported a 1.2% drop in December same-store sales on slow customer traffic and weakness in the gaming and digital-imaging segments.

A blizzard in the Northeast this weekend postponed about $1 billion in holiday retail sales by keeping shoppers out of stores in the days after Christmas, research firm ShopperTrak said on Wednesday.

U.S. shoppers searched for deals on high-definition televisions and popular toys on Friday, as retailers hoped that "Black Friday" would kick off the best holiday shopping season in three years.

U.S. retailers performed better during the key holiday shopping season this year after a historically dismal 2008, performing in line with dampened expectations, according to data released on Monday.

Retail Web sites kept amping up the deals Monday, the first day after Thanksgiving weekend's strong online sales, to try to maintain the momentum.

Wal-Mart's much-awaited Black Friday deals will focus on a gamut of gadgets such as high-definition TVs, laptops and Blu-ray players, as well as holiday gift favorites such as toys and DVDs, according to a copy of the retailer's circular obtained by CNNMoney.com.