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http://www.newsmax.com/headlines/holiday_shopping/2007/11/25/52043.html
Retailers Buoyed by Strong Holiday Start
Sunday, November 25, 2007
NEW YORK -- The nation's shoppers _ setting aside worries about higher gas
prices and a slumping housing market _ proved their resilience over the
Thanksgiving weekend, giving what the nation's merchants wished for _ a
strong start to the holiday shopping season.
Stores and malls opened the season as early as midnight, drawing
bigger-than-expected crowds Friday for discounted flat-panel TVs, digital
cameras and toys such as all things related to Disney Channel's "Hannah
Montana." Strong sales continued through Saturday, according to one research
group that tracks total sales at retail outlets across the country.
Clearly, the biggest draw was electronics, benefiting consumer electronics
chains like Best Buy Co. and discounters such as Wal-Mart Stores Inc. and
Target Corp. Popular-priced department stores including J.C. Penney Co. and
Kohl's Corp. drew in crowds with good deals. Toy stores like Toys "R" Us
Inc. fared well too. Still, apparel sales appeared to be mixed at mall-based
clothing stores, though a cold weather snap helped spur sales of outerwear
and other winter-related items.
"This was a really good start. ... There seemed to be a lot of pent-up
demand," said Bill Martin, co-founder of ShopperTrak RCT Corp., which tracks
total sales at more than 50,000 retail outlets. ShopperTrak reported late
Sunday that sales on Friday and Saturday combined rose 7.2 percent to $16.4
billion from the same two-day period a year ago.
Total sales on Friday, the day after Thanksgiving, rose to $10.3 billion, up
8.3 percent from the same day a year ago. Martin had expected increases no
greater than 5 percent.
Meanwhile, Internet research firm comScore Inc. reported a 22 percent gain
in online sales on the day after Thanksgiving compared with the same day a
year ago and estimated online sales would exceed $700 million online Monday,
the official kickoff to the online shopping season.
The signs were encouraging, but stores are now wondering whether bargain
hunters will keep up the pace as they face an escalating credit crunch,
depreciating home values and rising daily living expenses.
Frederick Crawford, managing director at AlixPartners, a turnaround
consulting company, said that amid economic challenges, people are buying
fewer gifts.
"Clearly, it was mission-based shopping," Crawford said. "People had their
list, and they were very specific in what they were looking for."
Consumers were out looking for bargains.
"The bargains are better this year, a lot better," said Theresa Calib, of
Houston, Texas, who was at the local Greenspoint mall Saturday. "We always
know what we want to get, and we get it." She noted she took advantage of
Foot Locker Inc.'s two pairs for $89 sale.
I'm trying to get everything done, and I did it," said Pat Marcantonio, of
Wakefield, R.I., who returned Saturday to the Warwick Mall after braving the
crowds Friday morning.
Marcantonio also shopped for herself Saturday, loading up a Bath & Body
Works bag full of frosted cranberry and sweet pea lotions. Bath & Body Works
was offering select gift sets at 30 percent off.
Meanwhile, in downtown Philadelphia, Barbara McGlade, of Wyndmoor, Pa., had
picked up deals on fleece clothing at Modell's, with prices marked down from
$29.99 to about $15.
"If I see something now, I'll pick it up," McGlade said. "You don't know if
you'll see it again."
The nation's stores worked hard to lure shoppers with expanded hours,
including midnight openings, and a blitz of early morning specials Friday.
J.C. Penney and Kohl's opened at 4 a.m., an hour earlier than a year ago.
Many stores were also more focused on discounting products that they knew
shoppers wanted. Gail Lavielle, a spokeswoman at Sears Holding Corp., which
operates Kmart and Sears stores, said it zeroed in on great deals on
electronics, instead of offering deep discounts on a wide range of products.
Still, analysts say frustrations were high across among shoppers who
couldn't get their hands on limited deals at many different stores.
Lavielle noted that the turnout Friday was better than a year ago, and
customer flow was steady throughout the weekend. Both Kmart and Sears sold
out a significant inventory of its flat-panel TVs. Other hot items were
Global Positioning System receivers, game consoles like the hard-to-find
Nintendo Wii, and digital cameras.
Toys "R" Us chairman and CEO Jerry Storch said the toy seller drew a strong
turnout Friday for its 101 early morning specials. He said that he was
pleased with traffic on Saturday and Sunday as well.
"This was a robust start to the holiday season," Storch said. Popular items
included anything related to Disney's hot franchises "Hannah Montana" and
"High School Musical," video games, consoles, an interactive parrot from
Hasbro Inc., and radio-controlled helicopters and planes.
In a statement Saturday, J.C. Penney reported "strong performance across all
merchandise categories," including fine jewelry, outerwear, and young men's
and children's assortments.
Wally Brewster, senior vice president of marketing and communications for
General Growth Properties Inc., which operates more than 220 malls in 44
states, estimated that sales rose 2.5 percent for the weekend compared with
a year ago, in line with projections. Electronic items were extremely
popular, but he added that the cold weather helped spur sales of fleece
outerwear and other winter items.
Karen MacDonald, spokeswoman at Taubman Centers, which operates 24 malls
across 11 states, estimated that business was up anywhere from mid to high
single digits Friday, while sales Saturday increased by as much as the
mid-single digits.
Both Macerich Co. and Simon Property Group reported strong sales at malls
across the country over the weekend.
Despite a decent showing, many shoppers interviewed said they planned to
curb their spending.
Earl Lee, a mechanic from Live Oak, Fla., who was shopping in Tallahassee,
said that he was planning on spending less this holiday season.
"Gas prices, everything's so high," he added.
John Muller, of Clifton, N.J., who was standing outside Macy's Herald Square
in Manhattan on Sunday, said he plans to spend only about $500 this year,
half as much as a year ago, because of higher expenses and worries about the
economy.
This year, "we are mostly buying for the kids," said Muller, who has two
children, ages 3 and 7.
Retailers Buoyed by Strong Holiday Start
Sunday, November 25, 2007
NEW YORK -- The nation's shoppers _ setting aside worries about higher gas
prices and a slumping housing market _ proved their resilience over the
Thanksgiving weekend, giving what the nation's merchants wished for _ a
strong start to the holiday shopping season.
Stores and malls opened the season as early as midnight, drawing
bigger-than-expected crowds Friday for discounted flat-panel TVs, digital
cameras and toys such as all things related to Disney Channel's "Hannah
Montana." Strong sales continued through Saturday, according to one research
group that tracks total sales at retail outlets across the country.
Clearly, the biggest draw was electronics, benefiting consumer electronics
chains like Best Buy Co. and discounters such as Wal-Mart Stores Inc. and
Target Corp. Popular-priced department stores including J.C. Penney Co. and
Kohl's Corp. drew in crowds with good deals. Toy stores like Toys "R" Us
Inc. fared well too. Still, apparel sales appeared to be mixed at mall-based
clothing stores, though a cold weather snap helped spur sales of outerwear
and other winter-related items.
"This was a really good start. ... There seemed to be a lot of pent-up
demand," said Bill Martin, co-founder of ShopperTrak RCT Corp., which tracks
total sales at more than 50,000 retail outlets. ShopperTrak reported late
Sunday that sales on Friday and Saturday combined rose 7.2 percent to $16.4
billion from the same two-day period a year ago.
Total sales on Friday, the day after Thanksgiving, rose to $10.3 billion, up
8.3 percent from the same day a year ago. Martin had expected increases no
greater than 5 percent.
Meanwhile, Internet research firm comScore Inc. reported a 22 percent gain
in online sales on the day after Thanksgiving compared with the same day a
year ago and estimated online sales would exceed $700 million online Monday,
the official kickoff to the online shopping season.
The signs were encouraging, but stores are now wondering whether bargain
hunters will keep up the pace as they face an escalating credit crunch,
depreciating home values and rising daily living expenses.
Frederick Crawford, managing director at AlixPartners, a turnaround
consulting company, said that amid economic challenges, people are buying
fewer gifts.
"Clearly, it was mission-based shopping," Crawford said. "People had their
list, and they were very specific in what they were looking for."
Consumers were out looking for bargains.
"The bargains are better this year, a lot better," said Theresa Calib, of
Houston, Texas, who was at the local Greenspoint mall Saturday. "We always
know what we want to get, and we get it." She noted she took advantage of
Foot Locker Inc.'s two pairs for $89 sale.
I'm trying to get everything done, and I did it," said Pat Marcantonio, of
Wakefield, R.I., who returned Saturday to the Warwick Mall after braving the
crowds Friday morning.
Marcantonio also shopped for herself Saturday, loading up a Bath & Body
Works bag full of frosted cranberry and sweet pea lotions. Bath & Body Works
was offering select gift sets at 30 percent off.
Meanwhile, in downtown Philadelphia, Barbara McGlade, of Wyndmoor, Pa., had
picked up deals on fleece clothing at Modell's, with prices marked down from
$29.99 to about $15.
"If I see something now, I'll pick it up," McGlade said. "You don't know if
you'll see it again."
The nation's stores worked hard to lure shoppers with expanded hours,
including midnight openings, and a blitz of early morning specials Friday.
J.C. Penney and Kohl's opened at 4 a.m., an hour earlier than a year ago.
Many stores were also more focused on discounting products that they knew
shoppers wanted. Gail Lavielle, a spokeswoman at Sears Holding Corp., which
operates Kmart and Sears stores, said it zeroed in on great deals on
electronics, instead of offering deep discounts on a wide range of products.
Still, analysts say frustrations were high across among shoppers who
couldn't get their hands on limited deals at many different stores.
Lavielle noted that the turnout Friday was better than a year ago, and
customer flow was steady throughout the weekend. Both Kmart and Sears sold
out a significant inventory of its flat-panel TVs. Other hot items were
Global Positioning System receivers, game consoles like the hard-to-find
Nintendo Wii, and digital cameras.
Toys "R" Us chairman and CEO Jerry Storch said the toy seller drew a strong
turnout Friday for its 101 early morning specials. He said that he was
pleased with traffic on Saturday and Sunday as well.
"This was a robust start to the holiday season," Storch said. Popular items
included anything related to Disney's hot franchises "Hannah Montana" and
"High School Musical," video games, consoles, an interactive parrot from
Hasbro Inc., and radio-controlled helicopters and planes.
In a statement Saturday, J.C. Penney reported "strong performance across all
merchandise categories," including fine jewelry, outerwear, and young men's
and children's assortments.
Wally Brewster, senior vice president of marketing and communications for
General Growth Properties Inc., which operates more than 220 malls in 44
states, estimated that sales rose 2.5 percent for the weekend compared with
a year ago, in line with projections. Electronic items were extremely
popular, but he added that the cold weather helped spur sales of fleece
outerwear and other winter items.
Karen MacDonald, spokeswoman at Taubman Centers, which operates 24 malls
across 11 states, estimated that business was up anywhere from mid to high
single digits Friday, while sales Saturday increased by as much as the
mid-single digits.
Both Macerich Co. and Simon Property Group reported strong sales at malls
across the country over the weekend.
Despite a decent showing, many shoppers interviewed said they planned to
curb their spending.
Earl Lee, a mechanic from Live Oak, Fla., who was shopping in Tallahassee,
said that he was planning on spending less this holiday season.
"Gas prices, everything's so high," he added.
John Muller, of Clifton, N.J., who was standing outside Macy's Herald Square
in Manhattan on Sunday, said he plans to spend only about $500 this year,
half as much as a year ago, because of higher expenses and worries about the
economy.
This year, "we are mostly buying for the kids," said Muller, who has two
children, ages 3 and 7.
