Osprey Associates has reported that Black Friday, the traditional retail event that follows Thanksgiving Day in the United States has been a more subdued affair in bricks and mortar stores this year compared with 2014 according to independent retail tracking company, ShopperTrak.

While online stores reported increased activity and takings over the first two days, Thanksgiving and Black Friday, malls and department stores indicated that turnout in terms of foot traffic and takings was down noticeably on 2014.

James Conroy, chief economist at Osprey Associates said there were no surprises among the firm’s analysts. “We’ve been forecasting a gradual slowdown in consumer spending all year. The swing from bricks & mortar stores to online isn’t so much rooted in convenience as it is in pricing. Companies like Amazon sell goods and merchandise for less than they cost in order to drive revenues. Bricks & mortar stores can’t compete with that especially when they need to make a profit,” he added.

Investors are paying close attention to the holiday retail data believing that they may influence the Federal Reserve’s decision on interest rates in December.

The forthcoming December Fed meeting is the last monetary “cliffhanger” of the year and consensus throughout the marketplace is that the central bank will raise interest rates for the first time in nearly a decade but Osprey Associates is not convinced.

“Consumption makes up 70% of the US economy and any signs of a sharper slowdown could stay the Fed’s hand,” explained Conroy.

Osprey Associates says the odds of a rate hike will rise or fall with the publication of the November nonfarm payrolls due Friday.

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