CHICAGO, Dec 24: US retailers faced slower-than-expected traffic in stores on the last shopping day before Christmas as extended hours and steep discounts failed to draw a big crowd of shoppers.
“I don’t think the day is the kind of day that retailers thought it would be,” said Britt Beemer, head of America’s Research Group, which surveys consumer spending habits. “Christmas Eve is seldom the big day because of the fact that so many consumers ... want to be home.”
US retailers were counting on strong demand on Saturday to make up for solid but unspectacular sales so far this holiday season. The Saturday before Christmas has become the busiest shopping day of the year as consumers hold out for last-minute discounts.
“I expected the last minute shoppers to be out here a little earlier,” said Ida Hendrix, general manager of Briarwood Mall in Ann Arbor, Michigan.
The parking lot at Briarwood Mall was about half full around noon, Hendrix said.
Retailers said stores were jammed on Friday evening, with many people crossing the last items off their holiday shopping list before hitting the road for the weekend.
Analysts said retailers cut prices more this year than they did last year in the hope of luring cost-conscious consumers, many of whom are grappling with steep gasoline prices and bracing for bigger winter heating bills.
Wal-Mart Stores Inc., which set the tone for a fiercely competitive holiday shopping season with discounts including a laptop computer for under $400, said it was on pace to meet its December sales forecast.
The retailer said sales were starting off well on Saturday, but were not as strong as on Friday night. It predicted steady sales right up until closing time.
Wal-Mart, the world’s biggest retailer, said December sales were tracking within its forecast for 2 per cent to 4 per cent growth at its US stores open at least a year — also known as same-store sales.
Rival Target Corp. said earlier this week it expects to meet its goal of 4 per cent to 5 per cent growth.
Wall Street will have to wait until early January for official reports on holiday sales, which account for about one-fourth of annual retail sales and a big chunk of profits.
Gift cards were a popular item for shoppers who had procrastinated until Christmas Eve.
Retailers record revenue from gift cards only when they are redeemed, not when they are sold, so January has become a more important sales month in recent years.—Reuters
