US retail sales dropped by nearly eight percent for the traditional November-December shopping period, making it one of the worst holiday shopping periods in decades, the MasterCard Inc.'s SpendingPulse unit said in a report.
"A difficult economic environment combined with unfavorable weather... made 2008 one of the most challenging holiday shopping seasons in decades," said Michael McNamara, vice president of research and analysis for SpendingPulse.
Among the worst hit were the apparel, and electronics and appliance categories.
The holiday season is seen as a make-or-break period for many retailers and a key for the struggling US economy, which relies on consumer spending for 70 percent of activity.
US share prices shrugged off the gloomy data and ended h