Retailers had one of their best holiday seasons of the decade. Sales were up 6.1 percent on average, the biggest gain since 1992. This was due to the strong economy and the soaring stock market in late 1999. The new millennium also appeared to trigger sales. While on-line sales boomed, traditional shopping, such as at malls, was responsible for 90 percent of sales.

The sales increases were uneven, however. High-end retailers, such as Tiffany, Zales, and Neiman Marcus saw double-digit increases. Moderate-price department stores, selling home goods and seasonal apparel, fared less well. J.C. Penney's sales rose only 0.5 percent, and Sears' sales fell 0.6 percent. This is in spite of coupons and discounts for using store credit cards. Specialty retailers, such as American Eagle Outfitters, which identified trends and marketed their products well, performed better. Discount chains also saw big gains in revenues due to discounted prices and improved product quality.

(Updated February 1, 1999)