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Retailers Slash Prices; Consumer Response Looks Weak

Joe Martin/News Channel 8

Shoppers searched for bargains at International Plaza today.

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By RUSSELL RAY | The Tampa Tribune

Published: December 26, 2008

Updated: 12/26/2008 10:10 am

There were plenty of bargains and discounts awaiting customers early this morning, but the crowds stores were hoping for didn't materialize at retail hubs in Tampa.

At WestShore Plaza, a few shoppers were found in the predawn hours at Macy's and JCPenney, but traffic was light, and the parking lots virtually were empty.

Freddye Hudson and her daughter Erika Salter were among the few to arrive early at Macy's.

"We wanted to catch a suit sale," Hudson said.

Suits weren't the only item on their list.

"You see some cool stuff that people bought for Christmas," Salter said. "We're out here looking for those things, too."

Nick and Kimberly Johnston of Tampa walked out of Best Buy with what they described as a great deal on a Canon digital camera.

"This is 30 percent off what it would normally be," Nick said.

Many retailers opened before 6 a.m., offering 50 percent to 75 percent off on toys, furniture, electronics and clothing. JCPenney opened at 5:30 a.m. -- the earliest post-Christmas opening in the chain's history -- and offered customers more than 100 "doorbusters" until 1 p.m, including 75 percent off Christmas decorations. The chain even made wake-up calls to customers who signed up online.

With gift card sales down this holiday season and consumers looking to save money rather than spend it, even the big discounts may not be enough to salvage what looks to be one of the most dismal holiday shopping seasons in years.

"The last week of December represents about 14 percent of Christmas sales," said C. Britt Beemer, chairman of America's Research Group. "You can't save a season with only one-seventh of the sales to go."

The holiday season -- which typically accounts for 30 percent to 50 percent of a retailer's annual total sales -- has been less than jolly for most retailers. Job cuts, portfolio losses and other economic woes have persuaded consumers to cut back on their spending. Meanwhile, strong winter storms during the holiday season kept some would-be shoppers at home.

According to preliminary data from SpendingPulse -- a division of MasterCard Advisors that tracks total sales paid for by credit card, checks and cash -- retail sales fell between 5.5 percent and 8 percent during the holiday season compared with 2007. Excluding auto and gas sales, they retail sales fell 2 percent to 4 percent, according to SpendingPulse.

Sales of women's clothing dropped nearly 23 percent, and men's clothing sales slipped more than 14 percent. Footwear sales fell 13.5 percent. Sales of electronics and appliances fell even more drastically, almost 27 percent.

More consumers appeared to do their shopping online, particularly in the past two weeks of the season when storms snowed shoppers in. Online sales dipped just 2.3 percent from the 2007 holiday season, according to SpendingPulse.

Online retailer Amazon.com said today that the 2008 holiday season was its "best ever," with more than 6.3 million items ordered. Holiday bestsellers included the Nintendo Wii, Samsung's 52-inch LCD HDTV, the Apple iPod touch and the Blokus board game.

A better indicator of how retailers fared will arrive Jan. 8, when major stores report same-store sales, or sales at locations open at least a year, for December.

Information from The Associated Press was used in this report.

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