honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Saturday, December 15, 2001

This weekend's crucial for retail

By Andria Cheng
Bloomberg News

Langhorne, Pa. — U.S. retailers are keeping up discounts and offering early- bird specials to win shoppers in the last 10 days of what is turning out to be the bleakest holiday season since 1985.

Colleen Coulter arranges display tables at the United Alaskan Artists' holiday show at a mall in Anchorage. For the malls, holiday kiosks mean more merchandise to choose from and, as a result, more shoppers.

Associated Press

More than two-thirds of consumers surveyed by America's Research Group Ltd. said they plan to complete their shopping by tomorrow, compared to about 40 percent in previous years. Since the Sept. 11 attacks, a majority of people just want to spend more time at home.

"Retailers are going to have to transfer sales that were usually made next weekend to this weekend," said Britt Beemer, chairman of America's Research Group. "This weekend is their last big chance."

While the last two weeks before Christmas usually make up about 40 percent of holiday-season sales, this year they will account for about one-third of the total, Beemer said.

Sales in the week leading up to Christmas represented 31 percent of total holiday sales last year, according to the International Council of Shopping Centers.

"This is traditionally the busiest shopping weekend when it comes to holiday sales," said Dennis Kooker, vice president of marketing services at Alliance Data Systems, which tracks more than a billion transactions a year at more than 50 retail chains in the United States. "We don't necessarily want to wait until the last minute to finish our shopping, and that second weekend before Christmas becomes the trigger point."

Bank of Tokyo-Mitsubishi Ltd. expects December sales to rise no more than 1 percent while discounts are cutting into the profit made by retailers. Because of Hanukkah beginning earlier this year, sales probably will weaken in the second half of the month, the firm said. Sales in the November-December period probably will total 1.5 percent, the worst since at least 1985, according to the bank.

Internet sales this weekend are projected to be the largest so far this holiday season, increasing to $352 million from $270 million a year earlier, by BizRate.com Inc., a Web research company. Shoppers are trying to wrap up online purchases because of expiring shipping deadlines for receiving items by Dec. 25 using standard rates.

Many stores are expected by analysts to start offering express shipping at regular shipping rates. The electronics retailer 800.com is offering free second-day shipping on select merchandise.

Traditional merchants are also expected to promote in-store pickup of items purchased online as the holiday season winds down. Sears is promoting picking up merchandise at its stores. Amazon.com Inc., the largest Internet retailer, on Tuesday announced certain televisions, DVD players and other electronics bought at its site could be picked at Circuit City Group stores.

Web sales increased 30 percent between Nov. 19 and Dec, 12, BizRate.com said. It is projecting a 31 percent rise in sales through Christmas. Last year sales rose 60 percent during the similar period.