Nation's Retailers Slash Prices

NEW YORK (AP) -- With less than two weeks left until Christmas, retailers struggling with disappointing sales slashed their prices further, but their efforts might not be enough to help some make their sales goals.

``They're desperately trying to move out merchandise, but they are not doing so successfully,'' Kurt Barnard, president of Barnard's Retail Trend Report, said Sunday. ``This is the home stretch, and they are whipping the horse, but the horse is responding only sluggishly.''

Despite the abundance of bargains, many shoppers -- nervous about job security and political uncertainties -- were reluctant to splurge.

``I am spending less, just buying toys for my friends' children,'' said Judy Boudreau, from Jupiter, Fla., who was at Macy's in New York. ``I have to be more conservative, given what has happened to my investment portfolio.''

Lana Wienberg, shopping in Denver, said her family was forgoing some holiday spending to visit relatives in St. Louis.

``I guess we've re-evaluated,'' Wienberg said. ``We're spending more money on travel and less on gifts.''

The Thanksgiving shopping weekend, while solid, failed to give merchants the relief they were hoping for. And sales have been limping along since then. Sales at 80 of the nation's regional malls have declined 3.2 percent, from Nov. 23 through Dec. 9, according to the International Council of Shopping Centers. The results, however, don't include sales at department stores and other mall anchors.

Major stores were scheduled to report their weekly results, including sales from this past weekend, on Monday. Overall, the numbers were not expected to be good, although some companies said Sunday they were doing surprisingly well.

Sales at Bloomingdale's were running above expectations this weekend, according to chairman Michael Gould. But at K-B Toys, which operates 1,400 stores, the weekend's sales were up only in the low single digits from a year ago.

``We were hoping for better,'' said spokesman John Reilly, noting that sales of game consoles and game software were strong, but toys sales were unchanged from a year ago.

The Washington, D.C.-based National Retail Federation predicts total holiday retail sales, which excludes restaurant and auto sales, will rise in the range of 2.5 percent to 3 percent, to roughly $206 billion. That would make it the worst retail performance since 1990, when sales were basically unchanged.

Jeff Feiner, a managing director at Lehman Brothers (news/quote), expects sales at the 22 stores he follows will be up 2 percent, the worst since 1991.

``Discounting was rampant this weekend,'' said Feiner, noting that such heavy markdowns will only further erode retailers' profit margins.

Struggling Gap Inc. (news/quote) took even more aggressive markdowns to move out its merchandise, ranging from crocheted scarves that had retailed for $28 and were now $9.99, to lambswool and angora-blended sweaters that had dropped from $78 to $39.99.

At Saks Fifth Avenue's New York flagship there were racks of designer merchandise discounted by as much as 40 percent.

At Macy's New York store, consumers swarmed over piles of discounted handbags and sweaters. For some items that were marked down twice, consumers were able to shave 90 percent off the original price -- a great deal for a shopper, but disastrous for a store's receipts.

``I'm spending less this year because there are a lot more bargains,'' said Laura Manning, from Medford, N.Y., who has almost completed her holiday shopping.

``You're really getting more for your money,'' she said. ``I got sweaters that were 60 percent off for my sons in stores on Long Island. They're giving it away.''

Nancy Hellerstein, shopping in Denver, said the abundance of deals are luring her back to the malls.

``I'm one of these people who tries to do things early and I do, but at the last minute I think, 'That's a really good sale, I'll just go get one more thing,''' she said, while shopping the sale racks at Sears.

While most stores have found that their biggest problem is having too much merchandise, some have run short on certain items, including the hot Harry Potter toys.

As a result, Laura Lindstrom, from Bristol, Conn., regretted not starting her shopping earlier.

``I try to get it done all at once,'' said Lindstrom, who started her holiday shopping on Saturday, and was at the Westfarms Mall, in suburban Hartford, Conn., but ``there's nothing left to buy.''

She added that she tried to get some Harry Potter merchandise for her cousins, as well as Nintendo (news/quote)'s GameBoy Advance, but there were none to be had.

Have you seen any recent stats about bankruptcy filings? My gut feeling is that they are about to explode.

With 1 million people being layed off in November alone (per Brit Hume Fox News today) you can bet they ARE about to explode!!!

Big Mack,.. from what I'm reading, your right on!! Even though it has drawbacks (only in the *work* and *stress* of doing it) owning real estate is the way to financial independence. "IF" you buy when its truly a bargain!!!

You've given a lot of good advice on this thread. Thanks!!

I will start my Christmas shopping later this week. It will take me an hour, tops. I buy for my wife, and that is it. I shake my head watching her go nuts trying to find the right gift for parents, grandparents, sisters, nieces, nephews, et al. I think I've got her convinced just to send cards next year...the stress isn't worth damaging your health, and the materialism is out of control. Most products are garage sale bait anyway. No tree this year; it will be replaced permanently by a manger display next year (if I can find one NOT 'Made in China'.), in an effort to get back to the TRUE meaning of Christmas.

"IF" you buy when its truly a bargain!!!

Your right, thats the key, you make your money when you buy it right, not when you sell it. And never be in a hurry to sell,set your price and act like you don't care if you sell it or not, someone will come along and pay what you want, remember the old car salesman saying "theres an @ss for ever seat" :) I ask for a discount on everything I buy, and get it most of the time, I went to redwing boot store one time and found a pair I liked at $135 and told the guy, thats way too high and your goina have to do better than that, he went to his price list and said would $85 be ok, sure I said not having the heart to ask for more because he rolled over so easy :) I look for and get discounts even at wal mart if you only ask you will be floored on how easy it is. Only in america will we go to the mall and pay full bore retail and put it on a 22% credit card.

You've given a lot of good advice on this thread. Thanks!!

Sounds like your on the right track too!

BigMack

I have a brother and two sisters - who have financially sucked my mother and father dry. When they all go bankrupt and lose their house / apartment and don't have a place to live, what do I do when they come calling me / knocking on my door?

Thats a hard one. Sounds like you have worked hard and did without to get were you are at and don't want to be sucked dry even by family. The best thing you could do for them is if they go belly up and come to you for help is to feed them if they are hungry and no more. Well you could help them get hooked with low income housing in your area, chech with feds or state on the web, they can help, you don't want to destroy your family with them living with you. I know that sounds hard and it is, but if you continue to enable them on their wrong way of life they will never learn. They have to go thru the hard times to learn.

Teach them what you have done, give a man a fish and you feed him for a day, teach him how to fish and you feed him for a lifetime. It won't be easy, but its the only way they will ever stand on their own and stop being leaches.

Good luck, I'll say a prayer for ya. :)

BigMack

AMEN to your post #42

This year, I started in August. I made 19 embroidered pillow cases for the grandkids,..and for our folks. We made homemade candy for the adults/parents. That was it. We usually spend Christmas Eve day at the Family homeless shelter cooking and serving food. The Christmas day at the mens shelter serving families there. (They do all people at the mens shelter on Christmas day :o)

This year we just found out yesterday .. that I better get home to my folks house. (They have always been so understanding about sharing us with the homeless) My Dad is 80 and having some really strange health problems.

But I/we so agree with what you just said. We have been saying it for a few years now. It has gotten way to materialistic. Our grandkids are numb to rec'ing gifts. It isn't even fun anymore.

We gave two of the homemade pillowcases to two of them today. They were thrilled!!! I honestly think they were more excited than when we have bought them things.

BTW (I will never do that many pillow cases ever again!!! took 10 to 12 hour days.. since August!!! My hubby helped by doing all the cooking and dishes.. it was truly a joint effort, but I bit off more than I could chew :o) LOL!!!)

So thanks for saying something so profound. You are exactly right in OUR humble opinions!!!

FRegards!! And Merry CHRISTmas!!

Our grandkids are numb to rec'ing gifts. It isn't even fun anymore.

I remember one year my wife wanted to have a really nice Christmas for the kids but we were dead broke, but she would have none of it, and asked if we could cut and sell fire wood to earn money so we could buy a "really nice gifts for the kids" so off we go, we made about $400 (it took us about 2 mos of HARD WORK:) and bought all the latest toys, race tracks, talking dolls, you name it , it took me all night to put it together, and Christmas morning they got up and were'nt that all excited! Well about 3 or 4 days later after they had come back from gro shoping and were bringing in the gro a sak had broken and about 10 cans of small cat food came out on the porch, my wife came in and put up the gro and asked were the kids were and I told her they were playing with the cat food cans, they played with them for the rest of the day and didn't even look at all the toys we had bought them. Well even my wife had to admit we were wrong, next year they got cat food cans for xmas! :) No not really but we did buy simple toys and they just loved them.

You and yours have a Merry Christmas.

BigMack

Tennants trashing the places, not paying rent and having to evict. The ones that have owned them for a long time are doing all right money wise with rents for 1 bedroom apartments starting at about $900/mo and 2 bedrooms at about $1,200/mo.

After the 1986 "tax simplification act" you can only write off a total of $3,000/year against ordinary income amd the people that have bought places as rentals lately are going to be in real trouble of rents drop at all.

I don't want to put up with the headaches when I can make a guarnteed $50-100k in less than 6 months by cherry picking winners to buy and sell.

Thanks for your advice...

That's what I was planning to do, but nice to hear it confirmed...

Thanks also for the prayers.

People have to change by themselves - there's been entirely too much preaching and believing in this Prosperity doctrine that no matter what our sins or what irresponsible behavior we may engage in, God will just dump blessings on us (just keep sending in those tithes folks, the Lord will reward you seven-fold)...

With the events of September 11th and the beginning of what looks to be a serious economic downturn, I think we're beginning to see the start of God's serious wake-up call - even perhaps Judgement - for America.

(I do not believe that God does evil things, more that he removes his protective hand from the nation and allows things to happen... Something like the Holy Spirit being greived and withdrawing, only on a national scale)...

I WILL stand firm for the sake of my wife (we have no children) and parents. I may have to get power of attorney over my parents so they can't give their Social Security away, possibly also Personal Protection Orders so my Brother and Sister(s) can't call up and bother my parents... Oh joy...

I guess I should mention that Bro and Sis have "problems" which make them impossible to live with...

I'm steeling myself for it - I may very well lose my Brother and Sister to jail or starving or freezing in the streets (younger Sis is married and may survive - just barely - after losing everything)...

But I've resigned myself to doing what I have to do...

If we are indeed seeing the beginning of bad times for America, I fear that what I feel may be my situation may be played out among many, many people...

We gave two of the homemade pillowcases to two of them today. They were thrilled!!! I honestly think they were more excited than when we have bought them things.

As a charter member of the 'Grinch' thread running elsewhere on FR, I am still geared toward the "let them eat CHRISTmas cards" idea for next year. My wife is really in love with the concept of making her own CHRISTmas gifts; she just hasn't found her niche yet. (It's NOT candle making, but that's another story...) In any event; we are going to take a GIANT STEP back away from the materialism of 'sparkle season', and do what we can to return to a meaningful celebration of the birth of Jesus Christ. A very Merry CHRISTmas to you!

First off, you have no obligation to take care of them. That being said, if you want to do it, make them sign a promisory note for any money you lend them. Charge them a rate of interest (it could be a favorable rate such as Prime). This will be a legal obligation for them to pay you back and since you would be considered a creditor, it would put you ahead in the line of others if they have to declare legal bankruptcy as secured creditors get paid off before unsecured. they might get ticked off that you want them to do this but you have an obligation to yourself to protect your interests.

Good luck.

Not to be a doubting Thomas here, but has anybody seen anything besides scarves, sweaters, and handbags with prices slashed?

I've been watching the ads and doing walkthroughs, and I haven't seen "great" prices anywhere, and have seen very few "good" prices. Reading through the comments, it seems that nobody has mentioned anything besides ridiculously priced items being sold for slightly-less ridiculous prices (an 80 dollar sweater? Why would you spend more then 20?).

Anybody? Anything really out there?

Slight problem - there is no Wal Mart in NYC.

Let's keep it that way. When they opened up the Kmart at Astor Place, I wanted to throw up. I wouldn't be surprised, however, if they soon opened a store in South Brooklyn in the Marine Park or Sheepshead Bay areas.

Here in South Florida, most shoppers come from out of the country. Many South Americans buy in large quantities, as prices are lower here than in Brazil, Venezuela, Argentina, etc., all of which have high tariffs (we should send Pat Buchanan there). Since the Latin economies took a dive in 1998, sales have been slower than in the past. Nevertheless, when I went to the mall the other day, it was mobbed.

(It's NOT candle making, but that's another story...)

LOL!!! Sounds like my endeavors!!! Bless her heart.. she is trying :o)

As if this Christmas wasn't "lesson" enough. I have pretty much decided to crochete (sp?) lap blankets for all of them for next year (I know,.. I know.. glutten for punishment!!) But I heard that unlike embroidery where you have to be "looking" at the pattern allllll the time,.. you can actually watch tv while you do it!!! (Sounds pretty good to me!!) So, now I just have to figure out how to LEARN to do it!! LOL (but then I never knew how to embroider until this year,.. so I'll find a way!!)

Tell your wife, I'm hearing from tons of people that crocheting is much easier than embroidering. Maybe she can do something like that?? Wish her luck for me if she goes for it.

(I had HONESTLY considered making candles!!! I had just read the parafin box.. but not so sure about it after reading your reply :o)

You have a wonderful CHRISTmas too!!!

God Bless!!!

The best deals I got so far were in the more expensive stores. Children's clothing was slashed at Lazarus and were more expensive at Walmart. KB toys had the best toy sales compared to Toys R Us and Walmart, especially if you have a Barbie girl. Educational toys for kids 3 and up were cheap, too, at KB. I hate to shop so did it all yesterday and ended up buying printer paper at Walmart and left. I will finish up the day before when the real sales kick in and will buy for me when I go to Fl. to visit Mom, Dad and sis between the holidays. I plan to check out their deals!!

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