'Tis the season for discounts
NEW YORK -- The nation's shoppers -- who have been hibernating in recent months because of worries about rising gas prices and falling home values -- jammed malls and stores for pre-dawn discounts on everything from TVs to toys on the official start of Christmas shopping.
The aggressive tactics, like bigger discounts and expanded hours like midnight openings, apparently worked. Based on early reports, Macy's Inc., Toys "R" Us, K-B Toys Inc. and others that were noisy with discounts reported bigger crowds for the early morning bargains than a year ago. And electronic gadgets, particularly the hard-to-find Nintendo Wii, topped shoppers' wish lists, though frustrations were high among shoppers who couldn't get their hands on the limited bargains.
With the economy relying heavily on the consumer, however, it's crucial the Black Friday euphoria lasts throughout the season, expected to be the weakest in five years.
"I'm really looking for the bargains this year because I'm losing my job; they're moving our plant to Mexico after the first of the year, so I have to be careful," said Tina Dillow of New Richmond, Ohio, who camped out at a Best Buy store near Cincinnati at 3 a.m. because of a great deal on a laptop.
Louise Jackson of Chesapeake, Va., arrived at the MacArthur Center, a mall in downtown Norfolk, Va., at 7:30 a.m., a half hour before it opened.
"We're just browsing, to see what's out here, to see if there's anything that would be worth it," she said. By 9:30 a.m., she hadn't bought anything, although she did place a pair of pants for herself on hold at Nordstrom. Her only shopping strategy was to keep an eye out for good deals.
"The tougher economic conditions are driving more shoppers to take advantage of early bird specials," said C. Britt Beemer, chairman of America's Research Group.
Marshal Cohen, chief analyst at NPD Group Inc. agreed, but he noted shoppers were buying selectively. Overall, the biggest draws were consumer electronics, including flat-screen TVs, digital cameras, digital frames, and laptops. In toys, which have been battered by recalls of a slew of lead tainted Chinese toys, there were plenty of hits, including video games such as Activision Inc.'s "Guitar Hero III," toys related to Walt Disney Co.'s "Hannah Montana" and Smart Cycle from Mattel Inc.'s Fisher-Price, toy executives said.
Janet Hoffman, managing partner of the North American retail division of the consulting firm Accenture, said some parents, concerned about toy safety, may shift their purchases away from toys to video games and children's clothing. She added sales of children's clothing fared unusually well Friday.
And while mainstream department stores such as Macy's and J.C. Penney Co., which hammered shoppers with big discounts Friday, seemed to pull in the crowds, traffic at mall-based apparel stores was disappointing, according to Wachovia Capital Markets LLC analyst John D. Morris. One problem is there aren't a lot of must-have fashions.
Gail Lavielle, spokeswoman at Hoffman Estates-based Sears Holdings Inc. reported traffic increases from a year ago.
Macy's chief executive, Terry Lundgren, said 3,000 people started lining up at the Herald Square store at 5 a.m., forcing the store to open at 5:30 a.m., a half hour earlier. That was up from about 2,500 people a year ago. Among some of the most popular early morning deals were Martha Stewart faux holiday trees that were 50 percent off and outerwear and sweaters marked down by 40 percent to 50 percent.
"We all know that September and October were not great months, so there is some pent-up demand," Lundgren said. "We feel encouraged by the early signs."
Jerry Storch, chairman and CEO of Toys "R" Us Inc., which unveiled 101 early morning bargains, four times last year's number, reported 1,000 people waiting in line for the 5 a.m. opening at the Manhattan store, double the number a year ago.
Macy's, Toys "R" Us and others with locations in big cities also enjoyed increased business from foreign shoppers reveling in exchange rates that made discounts even deeper.
Melissa O'Brien, spokeswoman at Wal-Mart Stores Inc., which offered such specials as a Polaroid 42-inch LCD HDTV for $798 and a $79.87 Sony digital camera, only said "we are excited about today." Among the most popular items were flat-panel TVs, and various toys, particularly from the "Transformers" line. Special offers on GPS units and digital frames were selling "very fast," she said.
Target Corp.'s spokeswoman Lena Michaud said traffic was strong based on a spot-check of stores.