Merchants Look To Week Before Christmas to Recoup Season

ALBANY, NY (12/17/2008)(readMedia)-- Retailers are counting on a last-minute shopping surge during the critical week before Christmas to help them recoup from an otherwise soft December. Hampered by emergency weather conditions in much of Eastern New York and frustrated by dollar-conscious consumers, only 32 percent of merchants surveyed this week by the Retail Council of New York State indicated they are pleased with the sales activity in their stores since Black Friday weekend.

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. 15-16 and gauged retailers' perceptions of sales activity since Black Friday weekend. It also captured participants' expectations for the week before Christmas.

Following respectable activity over Black Friday weekend that ran counter to analysts' projections, soft sales in the first two weeks of December disappointed many who hoped the season would fare better than anticipated. Nearly 60 percent of surveyed merchants described their sales the past two weeks as being below their sales last year for the same period of time.

"Sales following Black Friday weekend typically soften even in the best of economies," said Retail Council President and Chief Executive Officer James R. Sherin. "We're disappointed by our survey numbers, but history shows that it's the week before and after Christmas that really determines the success of the holiday season for retailers."

More than 40 percent of surveyed merchants indicated that consumers aren't relying as much on credit cards for holiday purchases this season, but are using cash, personal checks and debit cards more than in recent years.

"In the face of a lengthy recession, many consumers are limiting their spending to the cash in their wallets rather than carrying credit card obligations into the New Year," said Sherin.

Top sellers for the first two weeks in December continued to reveal consumers' concerns about the struggling economy as basics like cold weather essentials (coats, gloves, sweaters) and other often lower cost items, including books and accessories, were popular.

In a bright spot for retailers, another national survey conducted by BIGresearch reports that consumers have more than 50 percent of their holiday shopping left to do. Perhaps caught off guard with five fewer shopping days between Thanksgiving and Christmas, more consumers haven't even ventured into stores to begin their shopping as compared to 2007.

"Consumers remain in the driver's seat this holiday season and retailers are fully prepared to hang on for the ride," Sherin added. "Merchants will do what they can to encourage cash-strapped consumers to shop by offering fantastic bargains. We remain optimistic that sales will pick up, as they typically do, in these final shopping days."

Hot Sellers for 2008 Holiday Season

For Girls: Barbie, Disney Hannah Montana, Bratz, Nintendo Wii, other video games, Elmo, Disney High School Musical, Disney Princess, American Girl

For Boys: Video games, Nintendo Wii, LEGO, cars, Transformers, Elmo, Star Wars, Hot Wheels, remote controlled vehicles, Xbox 360

For Adults: Cold weather apparel, books, CDs, DVDs, video games, Blu-ray DVD players, gift cards/certificates, jewelry and accessories

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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