Retailers Cautiously Prepare for 2008 Holiday Shopping Season With a Close Eye on the Economy

ALBANY, NY (11/10/2008)(readMedia)-- With the odds stacked against them, New York state retailers are bracing for a challenging holiday season. An informal survey of a cross-section of members conducted by the Retail Council of New York State revealed anxiety mixed with cautious optimism from respondents who believe the Wall Street crisis, general economic downturn and low consumer confidence, if unabated, will take a toll on 2008 holiday sales.

The Retail Council, the state's largest retail trade association representing 5,000 stores of all size and variety from national chains to independent Main Street merchants, conducts a Holiday Sales Watch survey of members each year between Thanksgiving and Christmas to track retail sales and trends.

To kick off the 2008 assessment, the Council sampled its members to ask what they believe the season holds in store for the upcoming holiday season.

"It's difficult to turn a corner these days without hearing news about the tough national and state economic climate, and retailers are taking it to heart," said Retail Council of New York State President and Chief Executive Officer James R. Sherin. "Still, gas prices have steadily declined over the past weeks, which may give shoppers more discretionary cash to use during the holidays. We hope this trend will continue."

While many merchants expressed concerns about the holiday season to come, others anticipated their sales would be the same as or better than 2007 and cited new locations, old-fashioned customer service and working "smarter" would help them beat the odds.

A majority of participants indicated they would be hiring the same as or more employees compared to last year to assist them during the 2008 holiday shopping season.

"Retailers have realistic expectations about the 2008 holiday season, and yet a majority of them aren't willing to sacrifice service and still feel confident enough to hire the same or more holiday employees to help prepare them for the season," said Mr. Sherin.

Retailers commented that they will offer generous sales and promotions this season, especially on what is perceived as luxury items, to attract customers to their stores.

To lower their expenses and limit quantities of excess merchandise, retailers will also keep a watchful eye on inventories. Many reported they will have leaner inventories this holiday season and purchase merchandise at lower price points, which they believe will be more attractive to dollar-conscious consumers.

"While consumers may spend less this season, retailers still anticipate busy stores and crowded parking lots," said Mr. Sherin. "In the face of severe obstacles, our members are doing what they can to keep a competitive edge."

The Retail Council will poll members three additional times via telephone between Black Friday and the week after Christmas to gauge retail sales and trends. A schedule of Holiday Sales Watch news releases will be available to the media the week of Nov. 17. Visit www.retailcouncilnys.com for the latest updates on the Retail Council and its Holiday Sales Watch.

-30-