Sales Slow During Last Holiday-Shopping Weekend

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The New York Sun

A much-hoped-for sales bonanza for the nation’s retailers appeared not to materialize on the last weekend before Christmas, despite an abundance of deals on toys and apparel.


Merchants needed a hefty sales surge to recoup lost business after a slow start this holiday season. Now, they’ll have to rely even more heavily on the final days before Christmas and post-holiday sales to meet forecasts.


“We are not getting the kind of lift we need. Traffic and sales were below expectations” on Saturday, said the chief economist at the International Council of Shopping Centers, Michael P. Niemira. He serves as an adviser for ShopperTrak, which tallies sales results from 30,000 retail outlets.


Total sales were down 7% to $6.7 billion on Saturday, compared with the same Saturday last year, according to ShopperTrak.


Mr. Niemira noted that luxury stores – which have enjoyed robust sales as their well-heeled customers have benefited from the economy’s recovery – had the best performance. Stores like Sears and J.C. Penney Co., catering to the mid- to-low income shoppers, attracted big crowds with deep discounts and expanded shopping hours.


What is hurting merchants is that there is no must-have item, except in consumer electronics. iPod music players and the PlayStation2 video game console have become difficult to find in many areas, according to Marshal Cohen, senior industry analyst at NPD Group Inc., a market research company based in Port Washington, N.Y.


The increased popularity in gift cards and online spending could be helping to skew the holiday sales figures. Gift cards are only recorded as sales when they are redeemed at the stores. Online sales, which are expected to increase 20% to 26% this holiday season, are not included in Shopper-Trak’s sales figures.


Another factor that probably dampened sales over the weekend is that the season is two days longer, tempting shoppers to delay their buying even later to get the better deals, according to a National Retail Federation spokesman, Scott Krugman.


Catrice Smith of New Orleans said she’ll be out bargain shopping Christmas Eve just like she does every year. “That’s when you get the slammin’ sales,” said Ms. Smith.


But procrastinating also carries risks – not being able to get a hot item like PlayStation2. “You can’t find one anywhere in Charlotte,” said Carol Strain, who was at the North Carolina city’s South Park mall Saturday. “I’ve called every Best Buy and Circuit City, and they’re not to be found.”


Wal-Mart, which had stepped up discounting after a disappointing start to the holiday season, reported on Saturday an uptick in general merchandise sales the week that ended Friday, noting that sales of winter merchandise improved. Company officials reached late Sunday declined to say how sales fared over the weekend.


Sears reported “very good customer traffic,” said a company spokesman, Bill Masterson.


Wally Brewster, senior vice president of General Growth Properties Inc., which operate 220 malls across the country, expects that sales over this past weekend will be up a modest 2 percent to 5% over a year ago. But he said that gift card sales should rise 20 to 25% this season over the year-ago period.


The New York Sun

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