ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, November 30, 1996 TAG: 9612020033
SECTION: BUSINESS PAGE: A-9 EDITION: METRO
DATELINE: NEW YORK
SOURCE: Bloomberg Business News
The holiday shopping season got off to a good start as shoppers packed into the nation's shops and malls and many left with bags crammed full of gifts.
Most people said they were buying - on what is traditionally a big day for window shopping - because the economy seems strong.
``There will be more toys under the tree,'' said Denise Wayand of Tampa, Fla., who just got a promotion at work.
Others jammed into stores such as Toys ``R'' Us Inc. and Sears, Roebuck & Co. that opened at the crack of dawn and offered one-day discounts of as much as 50 percent on toys, clothes, jewelry and goods for the home.
``It's absolutely surprising how much buying is going on. That's a big difference from last year when we had good crowds but people weren't buying,'' Richard Giss, a partner in Deloitte & Touche's trade retail services group, which surveyed malls throughout the country on Friday.
Sales are generally expected to rise 3 percent to 5 percent this year. That bodes well for retailers - many of which get almost half their profits and sales this time of year - following a Christmas that had some of the worst non-recessionary sales in decades.
Two out of five Americans are expected to visit shops and malls this long holiday weekend. Many are expected to be in the buying mood, retail and mall managers said.
``We're seeing a lot of bags coming out of stores,'' said Nick LeMaster, general manager of the Cherry Creek Shopping Center in Denver. ``More than anything, that's because people are enjoying strong economic growth and general optimism.''
Retailers agreed.
``What we're starting to see is the consumers aren't afraid to spend,'' said Michale Lindblad, regional vice president for Bloomingdale's in California. The unit of Federated Department Stores Inc. just recently entered that state with five stores.
Indeed, shoppers are expected to spend more than they did last year, according to several polls.
``One of our mall managers said he'd never seen that many bags out there this early in the morning,'' said Teresa McFarland, public relations manager at the 520-store Mall of America, the nation's largest shopping mall, near Minneapolis.
One of the most-crowded stores at The Waterside Festival Marketplace in downtown Norfolk was The Christmas Attic, which was attracting a lot of notice with a moving train display.
The store sells collectible ornaments and decorations year-round, but the day after Thanksgiving tends to be one of store's busiest days, said assistant manager Lee Dorsey.
``And we're not even having a sale,'' she said.
``People have started shopping earlier this year. So far so good,'' said Avon kiosk manager Mary Abernathy at the Williamsburg Outlet Mall.
``The weather is just right for shopping. We've been busy ever since we opened up. People are buying anything, everything,'' said Jose Perez, a sports shop manager at the Wiliamsburg center.
Another reason for the early spending: The shopping season - between Thanksgiving and Christmas Eve - this year is five days shorter than last year.
One of the biggest sellers is the new Nintendo 64 video game system.
Clothing is expected to be one of the biggest sellers this year, continuing a yearlong comeback.
Items for the home also should sell well, analysts said, though consumer electronics sales are not expected to do as well, partly because of a lack of new products.
Many shoppers were drawn in to stores today by sales, which started early again, similar to last year.
``I'm a bargain hunter,'' said Jim Crowley of Monroe, N.Y., who shopped Friday at Macy's in New York.
Still, most price cuts aren't driven as much by competition as last year, when retailers had to cut prices deeply and often to compete with the many going-out-of-business or bankruptcy-related sales.
Sears, having three-hour sales Friday and today in all of its department stores, is promoting savings of as much as 50 percent off some items such as men's sweaters and women's jackets. Toys ``R'' Us offered money-off coupons for use between 7 a.m. and 11 a.m. The chain is also open until midnight Monday through Saturday.
Consumer electronics chains Circuit City Stores Inc. and Best Buy Co. each offered deals that include no payments for a year, continuing their cutthroat competition. Circuit City also advertised that everything in its stores was on sale. Even with early signs of a strong start to holiday shopping, there are pessimists who say high consumer debt levels and climbing personal bankruptcies could hold back spending. Britt Beemer, who heads a consumer research group called America's Research group, said he still thinks sales at best will rise 1.5 percent, less than the rate of inflation.
The Associated Press contributed to this report.
LENGTH: Medium: 96 lines ILLUSTRATION: PHOTO: ROGER HART\Staff. After Thanksgiving Day, shoppersby CNBcruise for bargains at Tanglewood Mall in Roanoke. Graphic: Chart by
staff: Holiday shopping. KEYWORDS: MGR