Dec. 24 (Bloomberg) -- U.S. retail store traffic fell 24 percent last weekend from a year earlier as deepened discounts failed to entice consumers to spend during what may be the worst holiday-shopping season in four decades.

Retail sales declined 5.3 percent Dec. 19 through Dec. 21 because of inclement weather and a slowing U.S. economy, Chicago-based research firm ShopperTrak RCT Corp. said today in a statement.

U.S. consumers are working with smaller budgets for holiday gifts this year because of rising unemployment and declining home values. Macy’s Inc. and Saks Inc. have offered discounts of as much as 70 percent to lure shoppers seeking bargains, and retailers’ profit margins may suffer as a result.

“The week after Christmas is going to be more crucial for retailers than ever,” Scott Krugman, a spokesman for the National Retail Federation, a Washington-based trade group, said in a Bloomberg Television interview. “The Friday after Christmas, with the discounts we’re hearing about, is going to be like another Black Friday.”

Traffic decreased 6.5 percent for the week through Dec. 20 from a year earlier, ShopperTrak said. The company uses a sampling of more than 50,000 stores in shopping centers and malls to measure foot traffic, or count the number of customers that enter the locations.

‘Super Saturday’

ShopperTrak said yesterday that U.S. customer traffic on Dec. 20, also known as “Super Saturday,” fell 17 percent from the corresponding day a year earlier, Dec. 22, 2007. Foot traffic was hurt by the economy, unfavorable weather and a calendar shift, the Chicago-based research firm said today in a statement. Sales for the day rose 0.5 percent.

Customers have five fewer shopping days between Thanksgiving and Christmas this season. There may be a slight boost in sales and traffic this week as people who waited until the last minute crammed their shopping into the days leading up to the holiday, according to ShopperTrak co-founder Bill Martin.

Same-store sales in November and December may drop as much as 2 percent, the International Council of Shopping Centers said yesterday, more than the previously projected 1 percent decline. That would make it the worst Christmas sales season in at least 40 years.

To contact the reporter on this story: Allison Abell Schwartz in New York at aabell@bloomberg.net.

Last Updated: December 24, 2008 17:36 EST