NEW YORK - Following a lukewarm shopping weekend, the nation’s stores are now focusing their attention on the final week leading to Christmas, as consumers seem to be postponing more of their buying to the last minute compared to a year ago.
Just as malls and stores ushered in the official start of the holiday season with expanded hours and generous discounts, they plan to do the same in the final stretch. Macy’s Inc. plans to pull all-nighters at several of its stores, including its Manhattan flagship, starting Friday. Toys “R” Us plans to keep its doors open until midnight every day until Dec. 24.
Based on early reports from analysts and malls on Sunday, sales results were generally unimpressive this past weekend, as shoppers were held back by a snow storm that spread a mix of sleet, freezing rain and snow from the Great Lakes states to New England. Consumers, fretting about economic worries, were also delaying their shopping even more this year, knowing there’s a full weekend before Christmas, when the bargains will be even better.
Meanwhile, for online retailers, which likely finished their busiest days last week, their fate appears to be already sealed: Holiday sales didn’t live up to industry’s hopes as lower-income shoppers pulled back on spending amid a housing slump. ComScore Inc. reported Sunday that online sales from Nov. 1 through Dec. 14 rose 18 percent — less than the 26 percent growth rate seen in the same period a year ago and the 20 percent projection for the season.
“This holiday season at this point has been disappointing, whether they’re brick and mortar, catalog or online,” said C. Britt Beemer, chairman of America’s Research Group, based in Charleston, S.C. “Shopper are more frugal and cost-conscious because they have less money to spend.” As for Saturday and Sunday, he said, “This weekend was busy, but it wasn’t huge.”
We have a number of factors that are actually contributing to the slow Christmas sales. The big factors are still the subprime mortgage meltdown, high energy prices, and consumer worries on the economy. But then there are also the smaller factors such as the ice storms that have been slamming the Midwest and eastern U.S. This brings up an interesting question--if the bad weather starts to clear, will consumers start to open their wallets for shopping? Or will consumers continue to be worried about the big problems of their mortgages and energy prices?
Great site you have here! I cannot for the life of me know what will happen this holiday season, but I do know that it seems I am already being ambushed with bills as is most America.
ReplyDeleteThe storms are not bad here in the South, but I am still pondering about what to buy and what to spend during this season.
I've canceled a four day trip to Orlando Florida and decided to stay home and save a little, just in case.
I've noticed that you have a lot going on with both your side bars. If you could do without some of it, that would make the reader more at ease.
I like what you have listed on your sidebar, but I came here to read your post.
It almost seems people have been less excited about Christmas this year...I hadn't thought why, but I'm sure the reasons you mentioned have a great deal to do with it..
ReplyDeleteI actually decided to skip Christmas this year (not the celebrating and family part, just the shopping and presents), which came as a shock to my family and to myself! No idea why, but something this year made me care a little less...and it's not even "just me". There is none of the usual buzz around the holiday that I've felt within my age group in past years.
I just thought I'd throw that out there. I guess my real point is, there must be some other contributing factors; the older generation - the people who have to worry about things like subprime mortgage meltdown and high energy costs - aren't the only ones who seem to have lost their spirit of "giving"...
Hello Let's Talk: Thank you for the compliment on my blog. I certainly do try to write about the mess of our political system, although sometimes I marvel at the crap that has gone through the Bush administration and question whether it is even worth getting angry about. It is endless! How much analysis can one do when the same crap keeps regurgitating over and over again? So my apologies for taking some time off my blog this December.
ReplyDeleteThe crux here is really all the problems and uncertainties that are taking place in this country. When you have over seventy percent of the American people thinking that the country is on the wrong track, and you have a Bush administration that is completely ignoring the American people while sending this country over a cliff, it is no wonder that people are staying home, rather than go Christmas shopping. People want change away from this disastrous Bush administration. Unfortunately, it is going to take another 13 months before we even get that change--if such change is possible. So I think the uncertainty is going to stay with us until January 2009, or at least until the November elections.
Hello Margeaux: Thank you for your comment. It is interesting that you have brought up the "older generation," which I'll take to be the baby boomer generation. Are the baby boomers' still spending their XMAS shopping budget? Maybe the boomers' who don't have to deal with the subprime mortgage meltdown, high energy costs, and the bad weather, are into the Christmas spirit, while the subsequent generations are still scared of what is going on in this world. It is another good contributing factor to consider.
ReplyDeleteAs for Christmas gift giving, our family is making a new tradition here. For Christmas presents, everyone gets a $50 gift card, then wraps it up as an anonymous package. The packages are handed out, opened, and then everyone can trade each gift card three times, before it ends up with the final person. It is a way of giving a Christmas present without having to spend so much money on gifts, while at the same time wondering why you got the short end of the stick on Christmas gifts. The $50 gift card is pretty cheap for a decent Christmas gift to whoever in your family gets it, and you can use the rest of your Christmas shopping budget for yourself.