Wednesday, December 12, 2007
From ho-ho-ho to just so-so
Some retailers offer discounts to entice customers; others say they don't have to.
The latest from The Ticker blog
To drum up sales, Kelly Fleming pulled out 40 percent off signs and set them in front of select footwear at her downtown Roanoke shoe store one weekend in early December.
"I wanted to generate cash flow," said the Dandelion Feet owner.
However, at Vivendi, a women's Brazilian apparel shop in Roanoke County, items won't be discounted until after Christmas. The owner, Virginia Wiegand, said sales at her store were strong in November and have remained that way through early December.
In the first weekend of this month "whoever came spent more than they normally would," Wiegand said.
There is mixed sentiment among consumers about spending this holiday season in the Roanoke Valley.
While the national picture for spending so far this Christmas is bleak, some Roanoke area retailers are reporting a mixed bag. For some, holiday sales are higher compared with last year.
For others, sales could use a pick-me-up.
Nationally, spending for the holidays is slower than in years past. Based on results from ShopperTrak, which monitors traffic at the nation's malls and retail locations, traffic was about 4.7 percent less during the last week of November compared with the same week last year.
And a report Tuesday by the International Council of Shopping Centers said sales at chain stores rose only 0.2 percent during the week ended Dec. 8.
"Consumers continue to be completing their holiday shopping later than last year," the report stated.
In the Roanoke Valley, certain factors stand to make or break this season's success rate for retailers.
Along with pressures on shoppers' wallets from high gasoline and grocery prices, at least three local stores are going out of business and holding large close-out sales to last through the holidays.
They include John Norman Clothiers, a men's and women's apparel store that will close Dec. 24, at West Village in Roanoke County. Already Larry Davidson, owner of Davidsons, a Roanoke-based men's apparel store and a competitor of John Norman, has predicted that John Norman's closing sale could slow Davidsons' holiday business.
After all, Davidson said recently, "It's not unusual for the menswear business to see 40 percent of business from mid-November to the end of December."
At Dandelion Feet, markdowns on everything except accessories and handbags several weekends ago attracted more shoppers. Fleming said November sales were down at her store, compared with last year. She did not know the exact percentage of the slide, but "it has been significant enough to notice."
Lately, though, sales have picked up at the store, she said. And Fleming made some changes to her shop's offerings to drive traffic. Last week, she received an order of pajama separates and sets to sell during the holidays, a new line called Sophie Golightly.
Already, Fleming said, she has sold three of the sets, priced at $100 each.
Retailers locally, from small stores to national chains, are trying to drive business and holiday shoppers in these last two crucial weeks of the holiday season. Advertisements entice shoppers to spend now while the sales are hot, such as a recent offer at Eddie Bauer. It advertises a buy one, get the second item 50 percent off special. The catch: The deal's only good for five days.
Maxine Casey admitted that the sales have enticed her all season. She began shopping for Christmas in July, and she's almost done, with only her husband and son left on her gift list.
"The sales have been good," said Casey, of Vinton, while shopping at Valley View Mall one evening. However, she added, "I think my spending is less ... it's because I started earlier, and I was focused on what I wanted."
As for consumers' shopping strategies this year, a departure from buying presents likely is not the way they are cutting back on spending, said Margie Johnson, a Virginia Beach retail consultant.
"I haven't heard anybody say they want less presents," she said. "They're changing the kinds of presents. They're pulling in their network of giving."
For example, Jessica Brown of Roanoke plans to buy Sheetz gasoline gift cards for some family members. It's a practical gift, and "they live on a tight budget," she said.
Shopping online for some gifts also was Casey's strategy for controlling spending. She said it kept her from being tempted to buy for herself while browsing the mall.
You won't find large discounts at all Roanoke area retailers. Frank L. Moose Jewelers in downtown Roanoke doesn't plan to mark down a popular holiday item -- diamond stud earrings -- likely because people will buy them. The price for two diamond earrings, at 1 carat each, is about $11,200, said owner Geoff Jennings.
Still, Jennings already is anticipating the need to attract last-minute Christmas shoppers. This year, he plans to open his store on Dec. 23, though Sundays are not a typical business day for him.
"With Christmas Eve falling on Monday, [opening Sunday] might be crucial," Jennings said.
