THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Wednesday, December 28, 1994 TAG: 9412280403
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
LENGTH: Short : 48 lines
It's after Christmas, so where are the bargains?
That's what puzzled the Reid brothers. The self-described bargain hunters were combing through store racks and shelves Tuesday morning when reality struck.
``There aren't a lot of good sales,'' Renard Reid, a Norfolk State University student, said incredulously as he emerged from Military Circle mall in Norfolk.
While there are some good deals out there this week, the biggest markdowns are yet to come in many stores, retail analysts say. Many retailers are playing a game of cat and mouse with consumers by postponing bargains, analysts say.
Here is how it works: Let's say the merchant offers a wool sweater for $50 at the start of the holiday shopping season. Bargain hungry shoppers pass, knowing a sale on the item is likely. The merchant responds, knocking $10 off the price. Some consumers bite, but many still balk.
On Christmas Eve the retailer figures it's a lost cause. So he slashes the price to $25 on the day after Christmas. Finally, the customers buy.
Sound familiar?
Last year, bargain hunting between Christmas and New Year's Eve pumped up lagging December sales for many retailers, said Kenneth M. Gassman Jr., a retail analyst with the Richmond brokerage firm Davenport & Co.
Merchants, realizing consumers were beginning to shop more during that period, made plans for the '94 holiday shopping season, Gassman said. Those plans included more advertising promotions but fewer markdowns, he said.
``We think the real sales will probably begin in January.''
Shoppers have learned how to play the waiting game.
``They watch the news,'' said Joe Mehailescu, manager of Fine's Men's Shop at Greenbrier Mall in Chesapeake. ``They know how to save a dollar.
``This year, we have to do half price to sell,'' Mehailescu said. ``And we started our sales a lot earlier than in the past.'' ILLUSTRATION: Color photo
TAMARA VONINSKI/Staff
Bargain-hunters shop at Greenbrier Mall.
by CNB