
Quiet days at the malls following the packed parking lots of Black Friday left .......... retailers with little cushion as they work to make year-end sales goals through consumers pressured by a slowing economy and rising fuel costs.
No wonder Wal-Mart plans yet another round of so-called Black Friday deals to be offered today on items such as the hot Webkinz toys and a laptop computer.
Deals like that helped drive millions of shoppers into the nation's chain stores over the Thanksgiving weekend. Those sales, along with a calendar shift that inflated some retailers' sales, contributed to an overall November increase of 3.5 percent at established stores operated by almost 50 chains, according to industry group International Council of Shopping Centers.
But business slowed significantly after the holiday weekend, feeding into concerns that this season could bring the slowest sales growth in five years.
Results for the month released by numerous chains yesterday indicated economic issues were hitting some consumers harder than others. "Upper income shoppers are driving good results among some retailers while lower and increasingly middle income shoppers drag down results at other retailers," said Frank Badillo, senior economist for consulting group TNS Retail Forward in Columbus, Ohio.
Discounter Target, which had a 1.1 percent increase in sales at stores open at least a year, said a customer pullback the week after Thanksgiving meant monthly sales fell short of its expectations. The retailer said it would have a hard time making its fourth-quarter earnings projections unless things pick up in December.
Rival Wal-Mart reported a 1 percent comparable-store sales increase in its namesake stores and said customers responded well to targeted price cuts, which appeared to support contentions that shoppers were trying to spend less.
The vagaries of the calendar muddied the picture. Retailers may benefit from an early Thanksgiving that adds extra time between that holiday and Christmas, but the extra time also could have contributed to a loss in momentum as consumers put off shopping chores.
Seven of the season's top 10 shopping days are likely still ahead, according to Chicago firm ShopperTrak. The big weekend before Christmas, which falls on a Tuesday, is expected to see a rush to the stores.
In addition, a calendar shift that moved sales into November's accounting helped department store operator Macy's produce a 13.4 percent comparable-store sales boost, but the retailer warned December could bring a dip of 4 percent to 7 percent. J.C. Penney and Kohl's also are expecting decreases in sales at established stores in December after reporting increases in November.
Holiday sales had been shifting even without calendar quirks, according to the shopping centers group. Gift cards now account for 10 percent to 15 percent of holiday sales, and many aren't spent until January. They don't show up in retailers' sales until they're used.
Still, the first month of the holiday season offered insights into customers' plans. A Retail Forward survey in November found clothing, toys, books and music all lower on shoppers' lists than last year. Shoppers seem more inclined than last year to buy video games or gaming systems.
The survey also found shoppers, regardless of income, planning to cut back on spending, with middle-income consumers looking to decrease their budget by 6 percent on average.
Meanwhile, luxury retailer Saks Inc. posted a 25.7 percent increase last month in sales at established stores. The chain's strongest categories included women's shoes, handbags, fine jewelry and coats.
It wasn't just upscale customers buying coats. The arrival of snow and chilly temperatures in parts of the country spurred sales of fleece, sweaters and jackets at such diverse retailers as Macy's, Wal-Mart, Kohl's and American Eagle Outfitters.
York-based department store operator Bon-Ton Stores Inc. said cold-weather merchandise, which saw double-digit sales decreases in September and October, posted a double-digit sales increase in November.