Retailers Usher in the Holiday Season
Posted: Fri Nov 28, 2003 4:33 am
Retailers Usher in the Holiday Season 15 minutes ago By ANNE D'INNOCENZIO, AP Business Writer
NEW YORK - Retailers were starting the holiday shopping season Friday with the usual gimmicks, including early bird specials and expanded shopping hours.
But with an improving economy, merchants are more hopeful this year that consumers will keep buying throughout the season, not only when the merchandise is 50 percent off.
"It's not going to be easy. Stores have conditioned consumers to buy on sale," said Burt Flickinger, managing partner at the consulting firm Strategic Resource Group in New York.
Some retailers — particularly department stores and apparel merchants — plan to be stingier with markdowns than in the past. They're counting on consumers to be so pleased with new services and exclusive merchandise that they'll be willing to pay full price.
For instance, Domain Home Fashions is sending design consultants to their homes for free instead of using deep discounts to lure shoppers.
Bloomingdale's also plans to discount less, counting on upscale holiday decor and splashy versions of its private label merchandise to motivate shoppers. And Bergdorf Goodman is focusing on designer names that can't be found elsewhere to draw well-heeled shoppers.
Others followed tradition.
Sears, Roebuck and Co.'s early bird specials, from 6 a.m. to 11 a.m., include $99 grills and $299.99 combination DVD camcorders. All-day specials include 50 percent off on all sweaters and outerwear, except its Lands' End label.
At J.C. Penney Co. Inc., consumers can get 50 percent reductions on holiday decorations, and 35 percent to 50 percent discounts on selected apparel.
Wal-Mart Stores Inc. is offering such early bird specials as Symphonic 20-inch flat screen TVs for $99.46, Apex DVD-CD combination players for $29.87 and Kodak digital cameras for $99.74.
The Washington-based National Retail Federation projects total holiday sales to be up 5.7 percent to $217.4 billion from last year. That compares with a modest 2.2 percent increase in 2002.
Stores should also benefit from a quirk in the calendar — the holiday season has 27 shopping days, instead of last year's 26.
Still, while many retailers believe the holiday 2003 season will be better than last year, the question is by how much. The economy is on the rebound, but the job market, though improving, is still sluggish.
In fact, stores are aiming to avoid getting stuck with mounds of holiday leftovers by entering the season with inventories that average 7 percent below last year's levels.
Meanwhile, online holiday sales are expected to remain a bright spot.
Forrester Research estimated that online sales from Thanksgiving weekend to Christmas will increase 42 percent over a year ago to $12.2 billion. The results include travel and auction sites.
While the Thanksgiving weekend starts the shopping spree, it no longer is the busiest period of the season. Last year, the weekend accounted for 10.1 percent of holiday sales.
The busiest period — which is becoming increasingly important — is the last week before Christmas, which accounted for 41 percent a year ago. That's up from 34 percent in 2001 and 30.9 percent in 2000, according to the International Council of Shopping Centers.
The weekend's business, however, is hardly a barometer of how the rest of the season will fare. Last year, stores enjoyed a strong Thanksgiving weekend, but sales quickly deteriorated.
NEW YORK - Retailers were starting the holiday shopping season Friday with the usual gimmicks, including early bird specials and expanded shopping hours.
But with an improving economy, merchants are more hopeful this year that consumers will keep buying throughout the season, not only when the merchandise is 50 percent off.
"It's not going to be easy. Stores have conditioned consumers to buy on sale," said Burt Flickinger, managing partner at the consulting firm Strategic Resource Group in New York.
Some retailers — particularly department stores and apparel merchants — plan to be stingier with markdowns than in the past. They're counting on consumers to be so pleased with new services and exclusive merchandise that they'll be willing to pay full price.
For instance, Domain Home Fashions is sending design consultants to their homes for free instead of using deep discounts to lure shoppers.
Bloomingdale's also plans to discount less, counting on upscale holiday decor and splashy versions of its private label merchandise to motivate shoppers. And Bergdorf Goodman is focusing on designer names that can't be found elsewhere to draw well-heeled shoppers.
Others followed tradition.
Sears, Roebuck and Co.'s early bird specials, from 6 a.m. to 11 a.m., include $99 grills and $299.99 combination DVD camcorders. All-day specials include 50 percent off on all sweaters and outerwear, except its Lands' End label.
At J.C. Penney Co. Inc., consumers can get 50 percent reductions on holiday decorations, and 35 percent to 50 percent discounts on selected apparel.
Wal-Mart Stores Inc. is offering such early bird specials as Symphonic 20-inch flat screen TVs for $99.46, Apex DVD-CD combination players for $29.87 and Kodak digital cameras for $99.74.
The Washington-based National Retail Federation projects total holiday sales to be up 5.7 percent to $217.4 billion from last year. That compares with a modest 2.2 percent increase in 2002.
Stores should also benefit from a quirk in the calendar — the holiday season has 27 shopping days, instead of last year's 26.
Still, while many retailers believe the holiday 2003 season will be better than last year, the question is by how much. The economy is on the rebound, but the job market, though improving, is still sluggish.
In fact, stores are aiming to avoid getting stuck with mounds of holiday leftovers by entering the season with inventories that average 7 percent below last year's levels.
Meanwhile, online holiday sales are expected to remain a bright spot.
Forrester Research estimated that online sales from Thanksgiving weekend to Christmas will increase 42 percent over a year ago to $12.2 billion. The results include travel and auction sites.
While the Thanksgiving weekend starts the shopping spree, it no longer is the busiest period of the season. Last year, the weekend accounted for 10.1 percent of holiday sales.
The busiest period — which is becoming increasingly important — is the last week before Christmas, which accounted for 41 percent a year ago. That's up from 34 percent in 2001 and 30.9 percent in 2000, according to the International Council of Shopping Centers.
The weekend's business, however, is hardly a barometer of how the rest of the season will fare. Last year, stores enjoyed a strong Thanksgiving weekend, but sales quickly deteriorated.