Posted on 12/16/2001 1:06:34 PM PST by sarcasm
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.''
For retailers, the disappointments of the season keep growing.
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.
``I was so desperate that I got my uncle a bonsai plant,'' she said.
Words of wisdom to live by.
If your skills include removing spilled candle wax from counter tops, cabinets, stove top, and throw rugs; by all means, go for it! I will pass along your crochet suggestion to my wife, although I told her a long time ago that if I ever saw her crocheting, it would remind me of my grandmother. That would make me feel older than I am, and would be grounds for divorce. :-) As she has expressed an interest in this endeavor in the past; I suppose it wouldn't kill me...
If you live to 102 ...it's only 'starting' middle age..... ;^)
I like your style!!! LOL
I once heard a saying, "your body may wrinkle,..but your mind won't".
Guess it's all in ones "perception". Actually, both my husband and I are blessed with really good genes. Our parents are in their 80's and look mid 60's.
We don't "look" our age (lots of people comment about it). And we are blessed with really good attitudes.. "We don't ACT our age" either.. :o)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.