Retailers' post-Christmas sales lure big crowds

By most accounts, the 2007 holiday sales season was a predictably lackluster one for retailers, as consumers pulled back on their spending amid rising gas prices, a housing market slowdown and credit crunch.

But the upside for retailers — and possibly consumers — is that it's not over yet.

Stores opened earlier than usual Wednesday with promises of big bargains in hopes of persuading price-conscious consumers and gift-card recipients to splurge before the new year.

Fry's Electronics in Renton opened at 7 a.m. to entice post-Christmas shoppers with an advertised one-day sale, including $1,000 off a 50-inch plasma HDTV originally priced at $2,799.

Macy's tried to instill a sense of urgency with discounts of up to 60 percent for purchases between 7 a.m. and 1 p.m., while Bellevue-based Eddie Bauer urged visitors to its Web site to redeem "gift cards now," promising its biggest bargains of the season.

"There are a lot of retailers out there who missed their numbers," said Britt Beemer, a research analyst with America's Research Group in Orlando, Fla. "They know that if they don't get shoppers now, they won't get them at all."

Mayra Vasquez, of Seattle, said she hit Southcenter Mall with no particular shopping goal Wednesday, but found bargains on a cute jacket and pair of boots that she had to wear them out of the store.

Not everyone was buying. About one in eight shoppers at the mall carried a bag or two. A few folks had armfuls.

Kristin Pann, of Des Moines, got up early, returned everything she and other family members didn't want, redeemed all her gift cards and "went shopping." She took advantage of a two-for-one sale at New York & Company to load up on bags, dresses, jackets and "a little frock coat."

After spending a little more than the exchanges and cards were worth, she declared herself "very pleased."

The International Council of Shopping Centers said Wednesday that sales at stores open at least a year during the November-December period appear to be coming in just below slim projections for a 2.5 percent gain, though it said post-Christmas buying could help turn that around.

Likewise, a broad gauge of consumer spending released by MasterCard Advisors, which includes estimates for spending by check and cash, reported Tuesday an increase of 3.6 percent from Thanksgiving to Christmas, down from a 6.6 percent gain in the year-ago period. Excluding gas and auto sales, that figure was 2.4 percent.

Gift cards, now a key to holiday revenues, aren't counted as sales by retailers until they are redeemed.

For the fourth straight year, gift cards were expected to be the No. 1 holiday gift, with more than two-thirds of consumers saying they would buy them this year, according to a survey by Deloitte & Touche.

Retailers hope recipients will buy new spring merchandise at full price after hitting the clearance racks for discounted fall items, Beemer said.

"You saw a lot of consumers buy gift cards and give them to relatives, but the dollar amounts might not be as strong this year as last year," Beemer said.

"Whether they get spent depends on how aggressive retailers are."

That's why Beemer is predicting "a lot of 50, 60, and 70 percent off sales" in the next five days.

But promotions at Nordstrom were "nothing out of the ordinary," said spokesman Michael Boyd.

He said Nordstrom's twice-yearly sale on men's merchandise began the day after Christmas, as usual, with discounts of 33 percent or more through Jan. 6.

The Seattle-based retailer declined to disclose sales trends ahead of its scheduled news release Jan. 10, although Boyd did note areas of strength included women's shoes and accessories, jewelry and premium denim.

Nordstrom warned in November that fourth-quarter sales at stores open at least a year probably would be flat compared with a year earlier.

Demand for outerwear and ski apparel contributed to record sales Saturday for Kent-based REI, capping a week of double-digit sales growth over the same period last year, said spokesman Randy Harlow.

"Between holiday shopping and people gearing up for the snow, we had an amazing week," he said.

Near Westlake Center in downtown Seattle, Heather and Emily Barto, 21 and 23, each had a couple of hundred dollars to spend Wednesday.

They were mostly looking for "going out" clothes and didn't expect to make a lot of indulgent purchases.

The clothes in the INC department at Macy's were fun to look at and try on, but a little pricey for the siblings, who are both students.

Likewise, Kourtnie Chamberlin, of Renton, and Anke Fitzgerald, of Seattle, left Southcenter mall empty-handed after checking out the "disappointing" sales.

"They weren't that great," said Chamberlin.

Several people at both Southcenter and Westlake said they were with friends who were shopping, but didn't plan to buy anything themselves.

One little boy, about 5, offered his mother money to leave Westlake.

"Mommy, I'll give you eight dollars if we can go home now."

McClatchy Newspapers, The Associated Press and Seattle Times business reporter Melissa Allison contributed to this story.

Amy Martinez: 206-464-2923 or amartinez@seattletimes.com

Christine Clarridge: 206-464-8983 or cclarridge@seattletimes.com