Christmas crunch
Competition even fiercer for retailers this season in tough economyBy Walt Frank, wfrank@altoonamirror.com
Ready or not, the holiday shopping season is here. And despite difficult economic times, the season will go on.
''No one is canceling Christmas because money is tight, but consumers will be sticking to their budgets and looking for good deals when deciding where to spend this holiday season,'' said Tracy Mullin, president and chief executive officer of the National Retail Federation. ''Retailers are going into this holiday season with their eyes wide open, knowing that savings and promotions will be the main incentive for shoppers.''
The federation is predicting that consumers plan to spend an average of $832.36 on holiday-related shopping, up 1.9 percent over last year's $816.69.
That represents the lowest increase in planned consumer spending since the foundation's Holiday Consumer Intentions and Actions Survey began in 2002.
''The economy has created a lot of challenges,'' said Tim Lyons, J.C. Penney Co. spokesman. ''We think Christmas will come and people will shop. There will be more emphasis than ever on shopping for value and spending wisely.''
The Holiday Shopping Intentions Survey conducted on behalf of Wal-Mart found that the majority of Americans - 61 percent - do not plan on cutting back how much they spend this Christmas season. Those who do plan to cut back, according to the survey, expect it will be $50 or less.
Michael P. Niemira, chief economist and director of research for the International Council of Shopping Centers, said the holiday season will be challenging for many U.S. chains, but discounters and wholesalers will have a relatively good season as consumers focus on basics and values.
''This year's holiday season will be more modest compared with recent years as the U.S. financial and economic crisis weighs on consumers' willingness and ability to spend,'' Niemira said. ''Not surprisingly, big ticket purchases are likely to take a back seat to more traditional, basic and value-oriented goods and services.''
Jeff Schwartz, manager of the Altoona Kmart, is optimistic.
''I still believe it will be a good holiday season. We are offering layaways, which has been a big help for us,'' Schwartz said. ''If you have good prices and good products, you will end up with strong sales.''
Ken Lakin, chairman and chief executive officer at Boscov's, expects competition will be the name of the game.
''We will be as proactive as we can and go after national buyouts and closeouts, which we can offer at terrific prices,'' Lakin said. ''Throughout the store, we will be very aggressive in our pricing.''
Electronics are the most desired gift for the Christmas season, according to the survey conducted for Wal-Mart.
Lakin said flat-screen TV prices have been dropping, which may help sales.
''The costs are down dramatically, compared to six months or a year ago,'' Lakin said. ''If people aren't buying [new] homes, they are trying to make their present homes as comfortable as possible.''
Housewares are another hot area, said Larry Baker, president of Unkel Joe's Woodshed, Altoona.
''We are seeing a lot of interest in everyday products in our housewares area,'' Baker said. ''People are buying more cookware and gadgets.''
Lakin said outerwear, sleepwear, sheets, comforters and vacuums also appear to be hot items.
Baker said he is seeing less interest in seasonal items, such as holiday decorations.
''In the seasonal areas, it could be an off-year. Rather than buying new decorations, people are using their old decorations,'' Baker said.
Seasonal hiring also may be down because of the economy.
''We usually do [hire seasonal help], but we are not planning on it this year. We have a staff of part-time people year-round, and they will get more hours in the fourth quarter,'' Baker said. ''We are just utilizing the people we have a little more.''
''We are doing it later. We have departments where we have to put people to service customers efficiently,'' Lakin said. ''We are just doing it a little later, closer to the bigger value days.''
Jim Sluzewski, spokesman for Macy's Inc., said the economy is something that retailers can't control.
''There are things we can control, such as what is offered and how we reach out to the customers. That is what we are focusing on,'' Sluzewski said. ''We don't need consumers to spend more; we just need them to spend more at Macy's.''
Mirror Staff Writer Walt Frank is at 946-7467.
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drophammer
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11-03-08 9:25 PM
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This country is slipping headlong into a depression. Next week gas prices that have been artificially manipulated are going to climb and the stock market will plunge as the hundreds of billions that Paulson is injecting into market to help McCain stops. The guy that created it is laying low and will not take the blame. TRILLIONS of our tax dollars have gone to wars and bailing out Wall Street and all the looting financiers. Two choices: A guy that's going to tax the truly rich and lower taxes for everyone else and spend more on American citizens, or, a guy that's going to slash spending and promote austerity, now that his pals have looted the treasury....but not for the military or bankers. Who would you rather have in the White House? It's time for payback from Washington. Our standard of living has gone down and we're further in debt. Shall we pay yet another price in slashed Medicare for our seniors and no money for anything but war, or, shall we dedicate the national resources tha
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LetsGoPens
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11-03-08 4:01 PM
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your friends are as stupid as you
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drophammer
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11-02-08 1:30 PM
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We're going to make up some nice food baskets for all the people we know. Nice unusual things they wouldn't buy for themselves. Zero waste, everything gets eaten and no junk left in garages. Bush managed the country for the wealthy for eight years. Fine, let the wealthy keep his consumer economy going for the next three months until he's gone. Huge sales in February usually. All my friends have taken a vow not to spend one cent on anything we don't have to buy until President Obama is sworn in.
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