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To: William Hunt who wrote (10047)12/3/1997 8:20:00 PM
From: Kai-Uwe  Read Replies (3) | Respond to of 97611
 
Bill:

I don't doubt your post - I do have another opinion for all to share. Am not sure which word is gospel here, but it is very interesting to see these two distinctly different views being professed.

K.

Good start to holiday selling
By Margaret Kane
December 3, 1997
ZDNN

The early returns from the traditional opening of the Christmas shopping season Thanksgiving weekend look promising for the computer industry.

According to the International Council of Shopping Centers, home entertainment sales, including PCs software and other consumer electronics, were up 3 percent compared to a year ago. That category was the third fastest gainer, outpacing an overall retail gain of 2.8 percent.

Considering the category is one of the smallest in terms of volume, the rise in sales is impressive, said John Konarski, spokesman for the ICSC.

"The reason is because in malls, which is what we survey, there are not as many electronic stores. (Those stores are) mostly in big boxes outside of malls, and a lot of sales come direct from manufacturers themselves," he said.

But those box stores had a good weekend, as well. Customers were lined up 200 and 300 deep outside several of Best Buy Co. Inc.'s stores on Friday morning, said Heidi Geller, spokeswoman for the Minneapolis, Minn., retailer.

Best Buy reports its earnings later this week, so Geller could not discuss specific figures, but she said it was "definitely a busy weekend" at the company's 285 stores.

Hot sellers included DVD -- or digital video disk -- players and the new class of sub-$1,000 PCs.

"The drop in computer and software prices is enabling more consumers to join the computer revolution. We're seeing more people buying second computers for their home," she said.

Other hot sellers included Nintendo and Sony gaming devices, interactive Barney and Barbie dolls, and software games Riven and Tomb Raider.

But while sales were up, Konarski said the holiday weekend has become less important than it was in years past. Many consumers delay purchases until later in the season. And the rise in electronic sales has also had an impact, particularly in the consumer electronics industry.

For instance, Forrester Research Inc. has predicted that $750 million worth of retail sales will be placed over the Internet in the fourth quarter, although obviously not all will be in the consumer electronics segment.

Retailers can now expect to see more of a gradual rise peaking in December, instead of a sudden jump in sales. "Our surveys show continued movement in the retail sector in October," said Matt Sargent, analyst at the La Jolla, Calif., research firm Computer Intelligence. CI hasn't yet compiled its November data, but Sargent said the company is predicting a strong Christmas.

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