Christmas on a budget

NEW YORK — Despite a recovering economy, the nation’s retailers appear to be at the same place they were a year ago, with shoppers again delaying holiday buying until the final stretch in hopes of snagging the deepest discounts.

Stores, which have had modest sales gains so far this holiday season, were hoping for a big surge this past weekend. Sales were generally strong Friday and Saturday, but a second consecutive weekend of snow in the Northeast, which hit Sunday, put many merchants behind again. Now the pressure is on to make their forecasts.

Wal-Mart Stores Inc., the world’s largest retailer, tempered its holiday outlook Monday, saying that same-store sales growth is now tracking at the low end of its 3 percent to 5 percent range. Sales at stores opened at least a year, known as same-store sales, are considered the best indicator of a retailer’s strength.

Wal-Mart said foot traffic was down for the week ended Friday from a year ago and customers are still buying the lowest priced merchandise. The Little Rock, Ark.-based company cited the trend toward delayed holiday shopping, and the popularity of gift cards, whose sales are only recorded when redeemed, for slow sales.

Target Corp., and Sears, Roebuck and Co., said sales were below forecasts. Sears spokesman Larry Costello hinted more discounts were coming, "We are going to continue to be competitive with our promotions."

Taubman Centers, which owns and manages 31 shopping centers in 13 states, reported a gain of 3 percent to 6 percent so far this season, based on a sampling of stores. For the week ended Sunday, malls, excluding those in New Jersey and Connecticut, were up mid-single digits.

"We’re probably still on track for a good season, though business has been uneven with the weather," said Michael P. Niemira, who on Monday joined the International Council of Shopping Centers as chief economist and director of research. He had been vice president of Bank of Tokyo-Mitsubishi Ltd.

Niemira is still sticking to his same-stores sales forecast of a 4 percent gain for the combined November and December months.

Luxury retailers, such as Neiman Marcus, have done well, but many stores in the middle have struggled.

C. Britt Beemer, chairman of America’s Research Group, in Charleston, S.C., said the big problem has been the lack of big discounts available.

"If retailers don’t have those 50 percent discounts, we are going to see more and more consumers who are going to buy fewer items or less-expensive items," he added.

Many retailers — particularly department and clothing stores — have been holding off on aggressive discounting, hoping consumers will pay regular price. But some major retailers such as Chicago-based Sears have given in and added extra sales this past weekend, hoping to fuel business.

Meanwhile, K-B Toys began its second wave of discounts Monday, cutting prices by 25 percent on about 200 different toy products and 50 percent off train sets and select other items.

Bargain-hungry consumers such as Sandy Morris haven’t been satisfied.

"Yes, there are a lot of deals if you’re willing to look for them," said Morris, who was shopping on Chicago’s Michigan Avenue this past weekend. "You have to be willing to walk a lot to find them though."