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To: maceng2 who wrote (26437)	12/21/2002 5:54:21 PM
From: calgal	Respond to of 74559

Retailers Slash Prices for Key Holiday Weekend URL: foxnews.com Saturday, December 21, 2002 CHICAGO — It pays to procrastinate this holiday season as U.S. retailers slash prices on everything from DVDs to diamonds, hoping to lure last-minute shoppers on the Saturday before Christmas. Consumers will be able to choose from some of the season's biggest discounts and round-the-clock sales on what has become the biggest shopping day of the year. With many Web sites now charging hefty rates for guaranteed Christmas delivery, retailers are counting on even dot-com devotees dashing out for those last few gifts. Friday's newspapers were filled with coupons for extra savings on already marked-down items. Some chains are starting early-bird offers at 7 a.m. on Saturday or offering special discounts for shoppers who use in-store credit cards, which bolster profits with fat interest fees. "What every retailer is trying to do right now is just get that little bit of 'oomph' before Christmas," said Pierre Lavallee, a managing partner with consulting firm Bain & Co. "You can expect some aggressive promotions." Contrary to popular belief, sales on the Saturday before Christmas outpace those on the so-called "Black Friday" after Thanksgiving, which was only the sixth-busiest day last year, according to the International Council of Shopping Centers. Holiday sales got off to a strong start in the weekend after Thanksgiving, but most retailers reported sluggish demand in the first half of December, hampered by uncooperative weather that kept shoppers at home -- and often clicking on Internet retail sites. The latest online sales data from comparison shopping service BizRate.com showed sales reached $262.8 million Wednesday, down 28 percent from the week before. From Nov. 1 to Dec. 18, sales grew a strong 42 percent to $11.1 billion from $7.8 billion a year earlier. Analysts attributed the gains to free shipping offers, but most of these have expired, causing sales to drop off. Orders placed Friday with leading Internet retailer Amazon.com Inc. should arrive in time for Christmas -- if they're for items that usually ship within 24 hours. On Friday, the Web site rang up a $14.25 shipping and handling fee to deliver the $32.99 LeapFrog Imagination Desk -- which Amazon.com ranked as its top customer choice -- in time for Christmas. For one-day shipping, the cost soars to $25.55. Television advertisements show brick-and-mortar retailers are well aware of their advantage in the last-minute shopping arena. Wal-Mart Stores Inc. (WMT), the world's biggest retailer, has been running ads promising its stores will be well-stocked, even on Christmas Eve. Sears, Roebuck and Co. (S), the largest U.S. department store chain, was one of many "clicks-and-bricks" retailers offering the best of both worlds -- online ordering and in-store pickup. The company was taking 50 percent off fine jewelry and offering zero percent financing on everything from vacuums to treadmills. Discount retailer Kmart Corp., which needs a strong holiday season to meet its goal of exiting bankruptcy by July, will keep its stores open for 110 hours nonstop from 6 a.m. Friday through Christmas Eve for the second year in a row. Analysts are expecting retailers to post only a modest sales gain in a year clouded by a soft economy, heavy job cuts and the threat of war with Iraq. Consumer confidence levels have inched up in recent weeks, but still languish near nine-year lows. Even holiday destination stores like toy and electronics retailers are reporting disappointing results. Top electronics retailer Best Buy Co. Inc.(BBY), which books the bulk of its profit during the holiday season, cut its earnings outlook earlier this week, saying sales at stores open at least one year will probably come in flat for the quarter ending in February. The company was offering popular DVDs, including "Minority Report," for $15.99. Amazon.com had the same movie for $19.49, plus shipping and handling. FAO Inc. (FAOO), parent of FAO Schwarz and Zany Brainy toy store chains, warned it is likely to file for bankruptcy unless its bank helped it out of a liquidity crisis. Media organizations reported heavy demand for advertising space as retailers rushed to draw business in an unusually short holiday season. Thanksgiving, the traditional start to the shopping season, fell six days later than it did in 2001, leaving fewer shopping days before Christmas. "We're seeing healthy double-digit gains in retail advertising so far in December, including strong showings by fashion jewelry stores, department stores, and chain stores," said New York Times Co. spokeswoman Catherine Mathis.