Retailers wary of holiday discounting offer deals for shopping early
By Lorrie Grant
USA Today
Retailers are rolling out perks for early-bird holiday shoppers this year, trying to head off the need for the desperation discounting that has marked the final weeks of recent holiday seasons.
Associated Press
One-day sales, gift-card promotions and sweepstakes — even free gift storage — are among the incentives for consumers willing to shop now. Merchants are hoping the early push will help entice shoppers while their budgets are full.
Betsy Galles does some holiday shopping at Bloomingdale's in New York. Retailers are hoping an economic rebound will put consumers in a buying mood this year.
Traditionally, retailers held the line on prices to get top dollar from shoppers who want to beat the crowds and get the best selection. But in recent years, consumers have held off buying, trying to out-wait retailers for the deepest discounts — and they've been winning.
So some retailers are willing to try phasing in discounts and incentives now.
"It's better for the retailer to sell it at a price break of 25 percent today rather than 60 percent in December, when people have already blown through their holiday budget," said Erik Gordon, director of the University of Florida Retail Center.
Among the lures being offered:
• Buyers' rewards. Department stores are offering gift cards and other discounts to customers who will spend big dollars now.
Bloomingdale's is giving $25 off at the register for single purchases of $100. The New York City flagship Lord & Taylor is handing out $25 gift cards to those who spend $500 or more on designer fashion. Similar incremental discounts are in place at Saks Fifth Avenue.
"We do it to reward our best customers and encourage people to shop more at Bloomingdale's," said spokeswoman Anne Keating.
• Sweepstakes. Lillian Vernon, a catalog and Internet retailer, launched a sweepstakes in October to draw early birds and build online sales and e-mail lists.
Customers are entered every time they make a purchase, up to once per day, until midnight, Dec. 31. Prizes include $25,000 in merchandise, a trip for two to New York City and a year of fresh flowers.
"The purpose of the sweepstakes is to help drive traffic to the Web site," said spokesman David Hochberg. The company now gets 30 percent of its orders online.
• Loyalty programs. Many retailers are trying frequent-buyer programs pioneered by supermarkets and drugstores.
Pier 1, J.C. Penney, RadioShack, and Payless Shoes are among retailers that have partnered with ClubMom .com, a program that targets mothers. More than 3 million members accumulate points when they shop that can be redeemed for jewelry, spa products, housecleaning service, lawn care and more.
"We're looking for marketing vehicles that reach our key target audience, and mothers in particular have been identified," said Charles Hodges of RadioShack.
• Layaway. At Crate & Barrel, catalog and online customers can make holiday purchases now, and the items will be held in the warehouse for shipping the week of Nov. 24 and arrival in time for Christmas.
"It gives customers the chance to reserve their holiday orders. They will be packaged immediately and charged to your account," said spokeswoman Lisa Ridolfi. Holiday delivery cannot be canceled, and the deal is not offered in its stores.
Retailers are optimistic they will break the slow sales pattern of recent years and that an upbeat economy will put consumers in a buying mood. The National Retail Federation sees 5.7 percent sales growth for the holiday, compared with 2.2 percent last year.
