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Shopping season isn't over |
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Written by asap
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Tuesday, 26 December 2006 |
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It was Black Friday all over again.
Newspapers packed with circulars. Stores opening at 6 a.m. Slashed prices on everything from winter apparel to housewares.
The 2006 pre-Christmas season was disappointing for many merchants, so retailers are working overtime to entice shoppers to head back to the stores.
Gift cards -- which on average make up 20 percent of a person's holiday budget -- are only recorded on retailers' balance sheet when cards are redeemed. Of course, the stores want you to spend more than what is on that card. Even someone returning or exchanging something is a potential customer.
A new poll shows that shoppers plan to take advantage of the post-holiday sales, but where are the bargains? And how good are they?
asap spoke to Britt Beemer, president of America's Research Group, a consumer behavior research firm, and James F. Smith, director of consumer forecasting at the Kenan-Flagler Business School at University of North Carolina at Chapel Hill, on where to find the best deals.
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asap: Where are we going to see some of the biggest discounts?
Beemer: "The clothes are going to be heavily discounted, winter apparel even more. This warmest December on record reduced consumers' desire to shop for winter apparel. Shopping for coats, boots skyrockets over night when it snows. It's amazing how many items people buy that are driven by that spur of the moment weather change."
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asap: What about electronics?
Beemer: "Electronics was such a strong retail category, I don't think you'll see much discounting unless there's some item out there that didn't sell well. But retailers sold so many HDTV sets, so much product, iPods MP3 players, everything. Everything in electronics was hot -- there was no single item. Best Buy, I'm sure, had a great Christmas."
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asap: Are the deals going to get better?
Beemer: "You should see bigger discounts, and retailers may wait until January to do them. They may hope people come out and use their gift cards at 40 percent discounts this week. I think they're going to be disappointed. A lot of consumers look at gift cards as their own money and they are not willing to spend it until they get a great deal."
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asap: So then do we hold on to our gift cards?
Smith: "Do not wait. Inventories are low, so if you see what you have been wanting on sale, get out there. The biggest mistake retailers made this year is underestimating consumers ability and eagerness to spend, so they didn't order enough merchandise and that to a degree becomes a self-fulfilling prophecy."
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asap: So where should we go to shop?
Beemer: "The retailers that had softer sales are going to have more inventory. They may not be discounting more, but they have more product. Circuit City didn't have a great Christmas. So they may be over-inventoried.
"The mall-based apparel stores, Express, Limited, had the biggest challenge this Christmas. The home stores didn't have a great Christmas like Pier 1 Imports, Bombay. I would say Linens 'n Things, Bed Bath & Beyond probably struggled a bit too."
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asap: If the store is out of what we want, should we wait?
Smith: "If it's a Barnes & Noble gift card and the book you were looking for wasn't there, they will back order it for you. But if not, show up in another week or two. Just don't make the mistake that 10 percent of the people do and lose the gift card."
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asap: How can we make sure we are getting the best deal?
Beemer: "Watch your mailbox. Retailers are going to their customers first with their biggest discount. If you are a member of any club or frequent shopper program, you'll probably get a coupon in the mail. Don't ignore independent retailers who don't necessarily advertise sales as much. Also, when you're shopping, it never hurts to ask if there are any advertised specials or coupons out there."
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asap: Anything I should rush out to purchase?
Smith: "Thrifty shoppers are out there buying Christmas tree ornaments, Christmas cards, ribbons and wrapping paper. Obviously that stuff isn't going to be restocked, so you want to get out there soon."
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Megan Scott is an asap reporter in New York. | Only registered users can write comments.
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