|
 Shoppers also showed signs they will do more of their spending
after December 25 than they did in the same period last year in the
hopes of snagging even more deals.
RetailNext estimated on Sunday that U.S. retail sales fell by a
mid-single-digit percentage at brick-and-mortar stores on Friday and
Saturday, two of the four most important shopping days of the
season, compared with the same days last year. That does not include
online sales, which have been strong.
RetailNext, an analytics firm, said the number of visits to stores
fell 7 percent on Friday and Saturday.
Analysts have said this is turning out to be the most competitive
holiday season since the recession, forcing retailers to ramp up the
promotions. The season generates 30 percent of sales and 40 percent
of profits for many stores.
"I'm doing my shopping on a budget, which is why I'm digging through
the clearance bin," said Katrina Attis, 25, as she shopped on Sunday
at a J.C. Penney Co Inc store in a mall in Elmhurst, New York.
Before Christmas, Attis will focus on her immediate family. For
herself and other members of her family, she will shop next week
when she expects bigger bargains.
"Retailers recognize that consumers will wait as long as they need
to," said Charles O'Shea, senior analyst at Moody's Investors
Service, who noted bigger discounts this weekend than in the
corresponding weekend in 2012 as he did store checks in various
cities.
The problem is particularly acute for specialty apparel retailers,
O'Shea added, pointing to teen apparel chain Abercrombie & Fitch as
one of the stores with the most noticeable increases in price cuts.
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While electronics chains have benefited from best-selling items like
Microsoft Corp's Xbox One video-game console and Sony Corp's rival
product PlayStation 4, clothing has been a harder sell, he said.
Teen apparel retailer Aeropostale Inc, which is trying to stanch
deep sales declines, was touting up to 70 percent off everything in
its stores on Sunday.
Still, some retailers seem to be faring well. Chad Hastings, the
general manager of Town East Mall in Mesquite, Texas, said the
department stores in his mall told him sales this weekend were
better than expected. The mall is anchored by Penney, Macy's Inc,
Dillard's and Sears.
Retailers caught a break from Mother Nature. Despite a winter storm
that hit major Midwestern markets such as Chicago and Detroit, no
event was severe enough to disrupt holiday shopping in any part of
the country, said Evan Gold, a senior vice president at Planalytics,
a weather consulting firm in Berwyn, Pennsylvania. Gold predicted no
disruptions in the last two days before Christmas.
Experts expect the promotions to continue until the very end of the
season in January.
"Without question, the shopper is in the driver's seat," said John
Yozzo, a managing director at FTI Consulting, in New York.
(Editing by Jan Paschal)
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