The National Retail Federation is forecasting a rough holiday season for retailers:
» U.S. consumers plan to spend an average of $682.74 on holiday-related shopping, a 3.2 percent drop from last year’s $705.01.
» Holiday retail industry sales are projected to decline 1 percent this year, to $437.6 billion. Last year’s drop was 3.4 percent.
As a result, retailers are getting creative and offering special promotions:
» Sears’ “Doorbusters,” in which stores open at 4 a.m., typically are held the day after Thanksgiving, but the department store giant is already running the promotional event.
» Special offers at electronics chain Best Buy have begun as well. Last week’s discounts included package deals on high-definition televisions and Blu-ray disc players, and a “buy two, get third free” deal on Playstation 3, Wii, or XBox 360 games $59.99 or less.
Source: Source: National Retail Federation, BIGresearch, Sears, Best Buy
Bye-bye, Black Friday.
Though the day after Thanksgiving traditionally marks the start of the holiday shopping season, some anxious retailers have already begun a full-fledged price-slashing assault to try to salvage what’s likely to be another rough holiday shopping season.
“In anticipation of weak demand, many retailers scaled back on inventory levels to prevent unplanned markdowns at the end of the season,” said Tracy Mullin, the president and chief executive officer of the National Retail Federation trade group. “Once the most popular items are gone, retailers won’t have anywhere to get them, so if there was ever a holiday season to buy early, this is it.”
Indeed, the Macy’s in Tysons Corner didn’t even wait until Halloween to roll out its Christmas decor, displaying trees, ornaments and red gift boxes. On the third floor, there is a candy section complete with “chocolate bark” gingerbread and a “Santa mail” red mailbox.
The early start undoubtedly will spark the annual howling about the commercialization of what are meant to be holy days. On the other hand, shoppers can expect rock-bottom prices at many stores.
For example, yellow “caution signs” were on display at Wet Seal in Tysons to prepare customers for the shocking savings they would apparently witness as they strolled through the store. “BE PREPARED TO SHOP,” read one. Another, “CAUTION, EXTREMELY LOW PRICES $1 AND UP.”
“Retailers’ focus on the holiday season has been razor-sharp with companies cutting back as much as possible on operating costs in order to pass along aggressive savings and promotions to customers,” Mullin said.
The group is expecting a 3.2 percent drop in holiday spending from last year.
At Macy’s, even the Holy Family is on sale — or, at least, the Lenox China giftware version. Regularly $143, Jesus, Mary and Joseph are now $99.99. And the three kings set, usually $186, can be gotten for the low, low price of $129.99.
Donna Tsitsikaos, vice president of America! The Store, which features about 15 locations in the Washington area, said the stores have begun a “two-for” campaign on T-shirts, sweat shirts and mugs that they will continue through the holiday season.
“We find that customers respond very positively to that,” she said, noting that many who travel to and through the nation’s capital want to buy something to commemorate their trip, and often need more than one of what they buy.
The chain also will take advantage of Barack Obama’s presidency. Starting Nov. 1, it will roll out an exclusive Obama collage to commemorate the president’s first year in office, which will have a similar discount structure, Tsitsikaos said.
Still, retailers likely will be holding their breath through Dec. 24 — and perhaps beyond.
“While the economic climate has shown some improvement from last holiday season, retailers are not out of the woods yet,” said Phil Rist, the executive vice president of strategic initiatives for BIGresearch, which recently conducted a holiday consumer sentiment survey for the NRF. “With a variety of factors still up in the air, including uncertainty over job security, many Americans just aren’t buying into the talk of recovery.”
