By CANDICE CHOI and MAE ANDERSON
AP Retail Writers
NEW YORK (AP) - Shoppers who waited until the final
days before Christmas were rewarded with big bargains and lighter
crowds. But their last-minute deal hunting may hurt stores.
Although fresh data on the holiday shopping season
won't be available until Christmas, analysts expect growth from last
year to be modest. Several factors have dampened shoppers' spirits,
including fears that the economy could fall off the "fiscal cliff,"
triggering tax increases and spending cuts early next year.
On Christmas Eve, Taubman Centers, which operates
28 malls across the country, reported a "very strong weekend." But many
last-minute shoppers in cities including New York, Atlanta and
Indianapolis were spending less than they did last year, and taking
advantage of big discounts of up to 70 percent that hurt stores'
profits.
Kris Betzold, 40, of Carmel, Ind., was out at the
Fashion Mall at Keystone in Indianapolis on Monday looking for deals on
toys, and said she's noticed the sales are "even better now than they
were at Thanksgiving." She said the economy has prompted her and her
husband to be more frugal this year.
"We under-budgeted ourselves by $400 for Christmas because we just wanted to put that money back in savings," she said.
Dianne Ashford, 40, was at the Lenox Square Mall in
Atlanta on Monday, said she was spending $500 on gifts this year, down
from the $1,000 she normally spends.
"Times are hard," said Ashford, who works for a
film production company. The best deal she found this year was a guitar
for her mother, half off at $79.
Other last-minute shoppers said they were holding off as much as possible for even bigger post-holiday sales.
Chris Ailes, a 37-year-old TV producer, also was at
the Lenox Square on Monday to pick up last-minute gifts for his mom and
grandmother. With the economy so shaky, he and his family are trying to
cut back on spending. So he said he's looking forward to discounts
after Christmas.
"That's when the sales are going on," he said.
At Macy's in New York, shopper Maureen Whyte had a
similar game plan in mind. Whyte, a 33-year-old who works for an
insurance company, was picking up last-minute stocking stuffers for her
kids. For some toys, however, she was holding off for the post-Christmas
sales and her kids understood why.
"I told them, 'Whatever Mommy didn't get you,
you'll get after this week,'" she said, noting that her children, ages 5
and 10, are fine waiting as long as they know they'll eventually get
their toys.
That's grim news for retailers, which typically get
40 percent of their annual sales in the critical November to December
period. Although the week after Christmas is considered part of the
season, by that time retailers are backed into a corner since it's their
last chance to get rid of items that have been sitting on shelves for
months. The steep discounts during that time mean sales are less
profitable.
ShopperTrak, which counts foot traffic and its own
proprietary sales numbers from 40,000 retail outlets across the country,
last Wednesday cut its forecast for holiday spending down to 2.5
percent growth to $257.7 billion, from prior expectations of a 3.3
percent rise.
Online, sales rose just 8.4 percent to $48 billion
from Oct. 28 through Saturday, according to a measure by MasterCard
Advisors' SpendingPulse. That is below the online sales growth of
between 15 to 17 percent seen in the prior 18-month period, according to
the data service, which tracks all spending across all forms of
payment, including cash.
Marshal Cohen, chief research analyst at the market
research firm NPD Inc., said retailers will have to be more aggressive
than usual with discounts in the days after Christmas to get shoppers to
spend. That could mean some stores will slash prices by as much as 80
percent to make shoppers believe the sales are a "once in a lifetime
opportunity."
"Consumers are going to be rewarded for waiting until after the holidays," he said.
___
Choi reported from New York and Anderson reported from Atlanta.
Tom Murphy contributed to this report from Indianapolis.
Copyright 2012 The
Associated Press. All rights reserved. This material may not be
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