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Late Shoppers Head to Nation's Malls

Posted on: Wednesday, 24 December 2003, 06:00 CST

Shoppers - some delayed by two consecutive weekends of snow in the Northeast, others waiting for the best deals- headed to the nation's stores and malls Wednesday to pick up those last-minute presents the day before Christmas. But retailers were resigned to the fact that business was unlikely to improve significantly from last year's holiday season.

Despite a rebounding economy, stores have seen only modest gains from last year, with the consumer remaining frugal, and waiting even longer to shop. The exceptions have been luxury stores and online shopping - two areas where sales are beating expectations.

As a result, merchants are counting more on procrastinators and post-holiday sales, which can often determine whether stores will meet their sales goals. Still, a heightened national security alert, announced Sunday, dampened holiday spirits, though some shoppers were unfazed with increased police presence in cities like New York.

"People are asking me why I was going into New York the day before Christmas with the orange alert. But we decided to go about our business," said Barbara Page, from Morristown, N.J., who was with her husband and daughter at Rockefeller Center, and planned to do some shopping.

Elsewhere, Lin Miller, 20, of Overland Park, Kan., was just getting started with shopping Wednesday morning for her 4-year-old daughter and nieces and nephew. Her cart was loaded with clothes and toys, including a Barbie swimming pool and a Care Bear.

"I'm late this year," she said. "It's not normal."

Why the late start? "I'm broke," she said.

Patrice Britton of Detroit was picking up some items at Eastland Mall in Harper Woods, Mich., before running off to work.

"I've already taken two loads of stuff to my truck," said Britton. "I need about five more items. At this point, I'll take whatever I can get."

At the Colonie Center in Colonie, N.Y., Debi Cannon was carrying two bags full of presents.

"It's been a little rushed this year," said Cannon, who was looking for a last-minute gift for her brother-in-law and an extra stocking stuffer for her 18-year-old daughter. December snowstorms kept her inside, Cannon said.

Christmas Eve is not traditionally a big sales generator, accounting for less than 4 percent of overall holiday sales, according to C. Britt Beemer, chairman of America's Research Group. According to the International Council of Shopping Centers, Christmas Eve day was the seventh busiest holiday shopping day last year.

Still, the week before Christmas is becoming increasingly important. Last year, the period accounted for 41 percent of holiday sales, up from 34 percent in 2001, the trade association said.

For the past several years, the Saturday before Christmas has been the busiest holiday shopping day. That was the case this year, according to ShopperTrak, which tallies total sales at 30,000 retail outlets. However, while the weekend's sales were strong, they were likely not robust enough for many retailers to offset the month's weakness.

Mid-price department stores have fared the worst, while discounters are struggling with muted increases. Low-income consumers have still not benefited from the economic recovery, and continue to be worried about job security.

Target Corp. said late Monday that December same-store sales were tracking below projections through Saturday.

Same-store sales, sales at stores opened at least a year, are considered the best indicator of a retailer's health.

Wal-Mart Stores Inc., the world's largest retailer, announced Monday that the month's same-store sales growth through Friday was running at the low end of its projected 3 percent to 5 percent range. It said that last weekend showed "some improvement."

"Sales are tracking a bit behind," said Michael P. Niemira, chief economist and director of research at the International Council of Shopping Centers.

But he's still sticking to his forecast for a 4 percent gain for the November-December period, a figure that was reduced from 4.5 percent earlier in the season, noting that the remaining days in December are still critical.

In fact, Miller of Overland Park, Kan., said she's going to shop after Christmas because she said she has "to make up for what I missed."

Final holiday sales won't be known until Jan. 8, when the nation's retailers report their December sales figures.

Still, even if same-store sales come in a bit below Niemira's reduced forecast, he said it would still be the biggest gain since 1999, when his tally posted a 5.4 percent gain.

Last holiday season's results were unchanged from 2001.

Meanwhile, online sales have been robust.

ComScore Networks said holiday online sales are expected to generate growth at the high end of its forecast of 25 percent to 30 percent.

On land, many stores refrained from heavy discounting earlier in the season, hoping consumers would be willing to pay full price. But, after seeing that strategy backfire, stores stepped up promotions as the season progressed, with discounts this past week near year-ago levels.

That was good news for Milwaukee resident Stephanie McElroy, who hadn't planned on buying any presents on Christmas Eve day, but came away with three large bags filled with toys and shoes for her cousin's children at the Bayshore Mall in Glendale, Wis.

"They were almost giving this stuff away," said the Milwaukee nursing student, who bought a pair of red leather boots for $4.99.

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Alicia Chang from Albany,N.Y.; Melissa McCord in Milwaukee, Wis.; and Heather Hollingsworth in Kansas City, Mo., contributed to this report.

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