Wed, December 24, 2008
SCRIPT:
US retailers are in survival mode- cutting prices and extending store hours- anything to lure in consumers.
This shopper came looking for one thing.
(SOUNDBITE) (English) ALTHEA LAMPKIN, SHOPPER, SAYING:
"Sale prices and I needed one."
But are the tactics enough to salvage holiday sales, which are expected to be the worst in up to 4 decades?
The weekend before Christmas typically accounts for over 11 percent of holiday sales, according to ShopperTrak.
But foot traffic on the last Saturday before Christmas, so-called Super Saturday, fell by 17 percent this year.
Retailers knew turnout would be bad, says Scott Krugman, of the National Retail Federation.
(SOUNDBITE) (English) Scott Krugman, National Retail Federation, saying:
"The last thing they want to see are unplanned markdowns, where they're going even lower than cost. I think retailers were very careful with their inventory levels to prevent that from happening. While the discounts are pretty steep, they're probably squeezing a little bit of a profit out of it."
Retailers are now pinning their hopes on the week after Christmas when consumers redeem gift cards and tend to spend a bit more. But the National Retail Federation warns the worst may be yet to come and retailers should plan accordingly.
(SOUNDBITE) (English) Scott Krugman, National Retail Federation, saying:
"What retailers need to do is to the best of their abilities, limit their operating costs, understanding that the weakness that we're seeing now is probably going to be with us throughout the first half of 2009. So when everybody is competing on price, the question becomes, how do you stand out?"
And if stores don't stand out, they'll be shut out. Experts say expect to see more store closures, restructuring and job cuts in the early weeks of 2009.
