Holiday Sales Watch – Report 2: Retailers Counting on Last-Minute Shoppers

Cash-Strapped Consumers Rely on Cash, Check and Debit More Than Credit Cards

ALBANY, NY (12/16/2009)(readMedia)-- Consumers took their usual hiatus from holiday shopping following Black Friday weekend, but retailers took it in stride. While many noted decreased traffic in their stores, half of merchants surveyed this week by the Retail Council of New York State were pleased with sales activity since Nov. 29. Fifty-seven percent indicated sales were better than or the same as their sales for the same period of time last year.

Retailers throughout the state reported the results through the Retail Council's annual "Holiday Sales Watch," a periodic snapshot of sales activity in stores small and large. This second Holiday Sales Watch was conducted Dec. 14-15 and gauged retailers' perceptions of sales activity since Black Friday weekend. It also captured participants' expectations for the week before Christmas.

"Even when the economy is strong retail sales typically drop following Black Friday weekend," said Retail Council President and Chief Executive Officer James R. Sherin. "The million dollar question is: Will shoppers come back to stores with enough buying power to make this holiday season more successful for retailers than 2008? Only time will tell."

The Saturday before Christmas (this year, Dec. 19) is usually the busiest shopping day of the year.

Merchants participating in the Retail Council survey confirmed that cash is king in 2009. Forty-six percent of surveyed merchants indicated consumers are using cash, personal checks and debit cards more than credit cards this year.

"Many consumers are trying to dig themselves out of debt, not add to it this holiday season," said Sherin. "Fortunately, many retailers planned accordingly with a good selection of lower-priced merchandise for budget-conscious shoppers."

Top sellers since Black Friday weekend continue to be basics like coats, gloves, sweaters (especially now that the state has had a good blast of cold weather), low-priced accessories, books and home goods (small home appliances and dcor). For shoppers with more to spend, flat screen televisions, digital cameras and portable navigation devices remained popular.

When asked if the weather had affected sales this holiday season to date, response from members was split 50/50. Fifty percent complained about the warm weather the first week of December, while others grumbled about the icy conditions in eastern and central New York on Dec. 13. Most were pleased to have escaped a major snow storm to date. "Good weather is helping sales," said one satisfied member.

"We're keeping our fingers crossed for that last-minute shopping frenzy our merchants are hoping for," said Sherin. "The weather forecast looks cold, but dry for the weekend across New York state, which bodes well for retailers and shoppers who still have gifts to buy."

Hot Sellers

2009 Holiday Season

For Girls: Barbie, Dolls (generic), Disney Hannah Montana, Video Games, Disney Princess, Dora the Explorer, American Girl, Nintendo DS, Nintendo Wii, Zhu Zhu Pets

For Boys: Video Games, Transformers, LEGO, Cars (generic), Nintendo Wii, Trucks (generic), Bakugan, Hot Wheels, Nintendo DS, Fisher-Price Toys

For Adults: Cold weather apparel, books, video games, Blu-ray DVD players, small kitchen appliances, gift cards/certificates, digital cameras, jewelry and accessories, portable navigation devices

About the Retail Council of New York State:

The "Voice of Retailing" in New York state, the Retail Council represents thousands of member stores of all size and variety. The Retail Council offers money-saving group benefit programs and government relations expertise to its members. For more information, please visit www.retailcouncilnys.com.

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