December 20, 1999
Stores Jammed, Online Cos. Slow
A.P. INDEXES: TOP STORIES | NEWS | SPORTS | BUSINESS | TECHNOLOGY | ENTERTAINMENT
Filed at 1:31 a.m. EST
By The Associated Press
NEW YORK (AP) -- Consumers went on a buying frenzy in the nation's stores over the weekend, but scaled back their spending online, fearing their gifts wouldn't arrive in time for Christmas.
Overall, many retailers -- both at the mall and on the Web -- are having a
strong holiday season and are on track to meet, if not beat, their sales
forecasts for Christmas.
Analysts project holiday sales at traditional stores will rise 5 percent to 6
percent over last year to more than $180 billion, while online sales are
expected to at least double to $6 billion.
``No one can say that this hasn't been a very good year all-around,' said
Kurt Barnard, president of the consulting firm Barnard's Retail Trend
Report in Upper Montclair, N.J.
Fueling the sales gains: high consumer confidence, low unemployment
and inflation levels and big gains on Wall Street -- all of which are making
Americans comfortable about their financial well-being and outlook for
the future.
Analysts say consumers' optimism about the economy drove many to
start their holiday shopping early -- instead of holding out for the deep
discounts that come closer to Christmas -- and be more indulgent in their
gift-buying.
``We took money out of the bank this year and we are spending it,' said
Caroll Dalrymple, as she shopped at Lenox Square Mall in Atlanta.
``I see everyone spending more this year,' she said. ``Probably because
the economy has been so good, and people have money to spend.'
But even with the strong start to the season, many traditional retailers still
say the biggest surge in business will likely come in the days remaining before Christmas.
Since 1995, the Saturday before Christmas has been the busiest
shopping day, followed by the few days right before the holiday, [awwww. too bad the internuts won't benefit -- no time to wait for the goods to be shipped]
according the International Council of Shopping Centers, a New
York-based trade group.
Online sales, meantime, are winding down. Orders were brisk early last
week and peaked Dec. 14. Since then, there's been some slowing, according to the Internet research firm BizRate.com.
``I wouldn't even consider shopping on the Net this late,' said Sharon
Wiley, of DeBarry, Fla., near Orlando. ``They say they can get it out in
time, but I don't trust them.'
While shoppers aren't surfing the Web as much, they are out in force at
the mall. Over the weekend, parking garages were completely filled and
long lines were seen at checkout counters of many stores at the Westlake
Center in Seattle. A Kmart in Minneapolis ran out of shopping carts by
midmorning.
``It has been gangbusters, unbelievable,' said Al Messer, general
manager at the Stamford Town Center in Stamford, Conn. ``I can't
believe how well the season is going.'
Luring many shoppers to stores were promises of big discounts,
especially on clothes. That's a result of the warmer-than-normal weather
in early December that dampened demand for heavy coats and wool
sweaters.
Sale signs hung around clothing stores such as the Gap and Ann Taylor,
while the big department store chains, including Macy's, J.C. Penney and
Sears, cut prices on everything from tools to gift baskets.
``How can I resist a cheap deal?' said Pat Smentkowski, who was
looking for discounts as she made her way through the Jersey Gardens
mall in Elizabeth, N.J.
While there were lots of price cuts to be found, not everyone was
interested in a bargain. Luxury goods -- from $30,000 millennium
engagement rings at Rogers & Holland stores to $2,500 Fendi
pocketbooks -- are among the top sellers this holiday season.
Electronics stores also are faring well, with shoppers grabbing up digital
cameras and DVD players. Consumers were also willing to pay
generously for hard-to-find toys, such as Pokemon merchandise and
Sega's Dreamcast video-game console that were being offered on Web
auction sites.
David Jones of Dallas was in no rush.
``I usually shop on the night before Christmas,' Jones said. ``I enjoy
watching everyone. They are either worried to death or having a lot of
fun.' |
