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In Tight Holiday Season, Wal-Mart Luring Back Shoppers

Tribune photo by JASON BEHNKEN

A study shows 59 percent of shoppers were planning to cut back this year, and even more are looking for sales.

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By KRISTA KLAUS | News Channel 8

Published: December 23, 2008

Updated: 12/24/2008 10:49 am

With only one more shopping day until Christmas, retailers are rolling out last-minute sales to salvage the 2008 holiday season. And retail experts are warning that a lackluster holiday season could mean the end of several big-name retailers in early 2009.

According to Deloitte's 23rd Annual Holiday Survey of retail spending and trends, 59 percent of shoppers said they were planning to cut back this year, and 81 percent said they are looking for sales this holiday season.

Tony Bombella of South Tampa said he is spending about 20 percent less this year than last.

"The money is tight, and people are getting laid off. Even my company is slower," said Bombella, who owns a local painting company.

Bombella was picking up last-minute gifts today at Burlington Coat Factory at Tampa's Britton Plaza shopping center.

Operations Manager Peggy Genevish said the store discounted perfume and seasonal gifts by 50 percent this week, and marked down jewelry by 25 percent.

Stefanie Baptiste of Tampa browsed the jewelry displays, shopping for her sister. Baptiste said she's done most of her shopping at stores like WalMart, Target, TJ Maxx and Marshall's.

"I have pretty much done discount shopping this year," she said. "They do have the better prices, and in this economy you need that."

According to a survey released today by America's Research Group, only one retailer is having a stellar retail performance this year.

C. Britt Beemer, CEO of South Carolina-based ARG, said Wal-Mart has had more shoppers than Sears, JCPenney, Target and Best Buy combined. The nation's largest retail chain saw more than 90 percent of last year's shoppers return this holiday season.

"On Black Friday, Wal-Mart had three different TV sets on sale. They had the momentum and they kept going," Beemer said.

Beemer said other discount and closeout retailers are having a better-than-average retail season this year but can't compete with Wal-Mart's advertising dollars and momentum.

"Closeout stores will be OK, but they're overwhelmed by the sheer size of Wal-Mart," Beemer said. Stores like Target, JCPenney, Old Navy and Best Buy each saw a return of between 70 to 79 percent of last year's shoppers.

ARG's survey revealed that some big box and department stores are facing disturbing trends that will have to be reversed or the companies will be fighting for survival after this holiday season. Costco, Sam's Club, Lowe's, Macy's and Dillard's each retained less than 69 percent of their customers from 2007, according to the survey.

"According to these data, a number of major names … are in trouble over the long run, and we will undoubtedly see more retail bankruptcies in the new year," Beemer said.

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