More trimmings for holidays?

  • Associated Press
  • Thursday, October 18, 2007 8:23pm
  • Business

NEW YORK — After struggling with slower-than-expected September sales, the nation’s stores now are weighing whether to trim already lean holiday orders.

Any major cutbacks could hurt manufacturers but help shoppers who could see discounted holiday leftovers pop up at off-price outlets.

Retail consultant Burt Flickinger III believes that stores will reduce orders by 3 percent to 5 percent in the next few weeks, with the biggest cuts wielded by apparel sellers.

“This is something we are watching pretty closely,” said Dan Hess, founder and chief executive of Merchant Forecast, a research company. “If there are cutbacks across the board, then these guys are really skittish.”

Apparel sellers suffered the most this fall as hot, muggy weather and a slowing economy discouraged consumers from heading to the malls.

Roseanne Cumella, senior vice president of merchandising at The Doneger Group, a New York-based buying office, expects that major department stores are more likely to trim orders than specialty stores because it’s harder for them to react to weather trends.

Hasbro adds Web spin

PROVIDENCE, R.I. — This holiday season, expect to be bombarded by a slew of toys that interact with the Web.

The avalanche comes as the nation’s toy companies try to mimic the enormous popularity of Ganz’s Webkinz, plush pets that come alive online with a secret password, and follow children to where they’re going — online.

Hasbro, Inc., the nation’s second largest toymaker, is the latest with its launch of a virtual spinoff of the popular line of Littlest Pet Shop collectible miniature pets. The initial line includes a series of five plush toys — a dog, cat, turtle, penguin and panda. Each one includes a collar with a code to enter at the www.littlest petshop.com.

Once kids are on, they can “officially” adopt their pet and play games to rack up “kibble points,” which can be spent to buy outfits and snacks for the digital version of their pet, or decorations for their pets’ virtual houses.

To launch the new collection, which will initially only be available in New York and on Hasbro’s Web site, the Pawtucket-based company has opened a temporary store on New York City’s Fifth Avenue.

Hasbro says it will release 18 more VIPs in the spring, when it releases the toy line globally.

Online sales bigger

NEW YORK — The nation’s consumers are expected to spend $33 billion this holiday season, up 21 percent from a year ago as shoppers are more likely to spend across all categories, according to Forrester Research, an Internet research firm.

The growth is slightly slower than the 23 percent pace seen in the 2006 holiday season reflecting the maturing of Web shopping. Forrester tracks holiday sales from Thanksgiving to Dec. 25. But Sucharita Mulpuru, analyst at Forrester, believes that online retailers will win in the fight for consumers.

“Even though consumers may be cutting back on overall spending, they will be spending a little more on the Web,” Mulpuru said. “The whole package makes it an appealing destination.” She added that with online shopping, consumers can get good discounts without fighting the crowds.

Free shipping has also been a lure. According to a survey conducted by Forrester last month, 61 percent of online consumers said they will be more likely to shop online with retailers that offer such a promotion.

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