NEW YORK – Retailers can blame the calendar. They can blame the weather. They can even blame New York City’s transit strike.
But in the end, the 2005 shopping season may just be another case of merchants not giving shoppers what they really want – must-have items at reasonable prices.
Without white-hot apparel products or toys to lure people to the nation’s malls and stores, many shoppers have held off to open their wallets. “More Americans are waiting to the end to shop for Christmas than at any other time in the last 10 years,” said C. Britt Beemer, chairman of America’s Research Group, based in Charleston, S.C. “The consumer was never excited about anything that they saw this Christmas.”
A quirky calendar hasn’t helped. Hanukkah, which begins Sunday, is falling late, and Christmas Eve is today, letting shoppers wait even longer than last year. Merchants with a big presence in New York City, such as Saks Inc. and Bloomingdale’s and Macy’s parent, Federated Department Stores Inc., were hit by a three-day transit strike that left commuters too exhausted to shop.
Higher heating fuel and gasoline costs have added to consumer burdens, even though unemployment is relatively low and personal income has been rising.
Gadgets such as Microsoft Corp.’s Xbox 360 videogame console, new sleeker versions of the Apple Computer Inc.’s iPod digital music players, and flat-screen TVs have helped draw crowds to electronics stores such as Best Buy Co. Inc. and discounters such as Wal-Mart Stores Inc. and Target Corp.
For many retailers, particularly apparel stores, the season has become a game of brinkmanship between savvy consumers who have learned they can get better deals if they wait long enough and merchants who are trying to maximize their profits.
According to a survey of 1,000 shoppers conducted by the International Council of Shopping Centers, only 26 percent of households had completed their holiday shopping by Dec. 18, compared with 31 percent during at the same time in 2004.
Some consumers have been disappointed at the lack of pre-Christmas discounts.
“We were kind of waiting for the deals, but we’re not really seeing any,” said Tammy Krieger of Prior Lake, Minn., who was at the Mall of America in Bloomington, Minn. on Wednesday.
Retailers – both online and on land – worked hard to jump-start the season a few weeks earlier than a year ago with enticing discounts, free shipping deals and advertising campaigns, although most retailers haven’t reacted with a frenzy of bargains beyond that.
“This year, it is more about stores’ trying to manage their business, their inventories and markdowns,” said Marshal Cohen, chief analyst at NPD Group Inc., a market research firm based in Port Washington, N.Y. “They’re also recognizing a second holiday season, which begins Dec. 26.”
Michael Niemira, chief economist at the International Council of Shopping Centers, said today and next week will be “big.” He believes merchants will still wind up with a modest 3 percent to 3.5 percent increase for the November-December period.
Today could prove to be the real wild card this year. The urge to put more under the Christmas tree may overcome the desire to get a bargain.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
