On the last day of shopping before Christmas Day, US retailers seemed to be turning their attention to the day after the holiday.
Amazon.com already was offering after-Christmas deals of up to 70% off on clothes and 60% off on some electronics. Old Navy was running TV ads that its “after-holiday sale starts early” with discounts of up to 75% off.
Usually stores wait until the day after Christmas to offer deep discounts of up to 70% or more on clothes, shoes and other holiday merchandise that didn’t sell. But this year, Americans still worried about the economy and other concerns have held tightly to their purse strings. And sales at stores have fallen for the past three consecutive weeks.
The earlier “after Christmas” deals come as retailers are feeling more pressure to attract Americans into stores during the final week of what’s typically the busiest shopping period of the year. The two-month period that begins on November 1 is important for retailers because they can make up to 40% of their annual sales during that time.
Sales at US stores dropped 3.1% to $42.7 billion for the week that ended on Sunday compared with the same week last year, according to ShopperTrak, which tracks data at 40,000 locations. That follows a decline of 2.9% and 0.8 % during the first and second weeks of the month, respectively.
Stores had a problem even getting Americans into stores, let alone getting them to spend. The number of shoppers fell 21.2% during the week that ended on Sunday, according to ShopperTrak.
Karen McDonald, a spokeswoman at Taubman Centers, which owns or operates 28 malls, estimated that business for the week that ended Sunday was unchanged to mid-single-digit percentage growth compared with a year ago. McDonald said business “was just OK”.
Overall, ShopperTrak estimates that holiday sales at stores so far are up 2% to $218.4 billion compared with the same period last year. That’s below the 2.4% forecast for the two-month period, but the company is standing by that estimate with a little over a week left before the season ends.
The National Retail Federation, the largest US retail group, also said it’s sticking with its forecast that sales in stores and online will be up 3.9% to $602.1 billion.
In order to get that growth, stores have tried all they can to lure shoppers in. That includes rolling out discounts that are usually reserved for after Christmas.