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NEW YORK, Dec 25 (AP): Shoppers - some holding out for the best deals, others just not inspired to shop earlier - headed for the nation's malls and stores for last-minute gifts or gift cards Saturday, the day before Christmas.
With shoppers delaying their holiday shopping even longer than last year, merchants are depending even more on the final hours before Christmas and post-holiday business to salvage the season. The exceptions have been online retailers, sellers of consumer electronics, and luxury stores, which have continued to generate strong gains.
A longer season between Thanksgiving and Christmas, a late Hanukkah and the lack of must-have items, except for gadgets such as Microsoft Corporation's Xbox 360, flat-screen TVs and Apple Computer Inc.'s iPod digital music player, have all helped consumers prolong their shopping.
Meanwhile, merchants with a big presence in New York City, such as Saks Inc. and Bloomingdale's and Macy's parent, Federated Department Stores Inc., were hit by a three-day transit strike that left commuters too tired to shop.
"I've been down here since 8 a.m. and this is all we came back with," said Lachaun Brooks of New York, pointing to two bags of merchandise. She noted that the strike kept her from shopping. "It was just a horrible time for them to have picked to go on strike. It just wasn't fair."
Michael Gould, chairman of Bloomingdale's, said the flagship would not be able to recoup lost sales but the affect on the overall Bloomingdale's chain would be minimal. However, Saks Inc., which operates Saks Fifth Avenue here, could take a bigger hit, analysts said.
"We are having a good day," said Kathleen Waugh, a spokeswoman at Toys R Us, Inc. She too noted that the company's flagship store would not be able to make up for lost sales from the strike. But she said the strike had a negligible financial impact on the overall chain, and expects the company to meet holiday sales goals.
For plenty of national chains far away from New York City, it was also a last-minute waiting game.
"We are seeing nice traffic up to the last minute. We think (the holiday season) is going right down to the wire," said Gail Lavielle, a spokeswoman at Wal-Mart Stores Inc., which confirmed Saturday its December sales growth forecast of 2.0 per cent to 4.0 per cent. The estimate is based on same-store sales, or sales at stores opened at least a year.
There are more procrastinators out there with bigger crowds on Christmas Eve, compared with last year.
To meet the need, Wal-Mart for the first time set up a special checkout aisle for those buying gift cards Saturday, Lavielle said.
The final days before Christmas and post-holiday business, boosted in part by gift card sales, have become increasingly critical for retailers. Gift card sales are not recorded on a retailers' balance sheet until the cards are redeemed.
According to BigResearch, which conducted a poll for the National Retail Federation, consumers are expected to spend a total of US$18.48 billion on gift cards this holiday season, up 6.6 per cent from a year ago. But many stores and malls are reporting much bigger gains.
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