By Bill Kirk
bkirk@eagletribune.com
November 23, 2008 02:10 am They're trying everything. Coupons. Rebates. Free shipping. Even handing out truffles. Faced with what experts say could be the worst holiday shopping season in decades, the nation's biggest retailers are rolling out the red carpet for consumers, hoping to entice them with low prices, midnight openings on Black Friday, and a host of giveaways and free goodies. "Retailers have had to work extra hard to get consumers' attention," said Kathy Grannis, spokeswoman for the National Retail Federation. "So far, they've done it through deep discounts and special promotions." Local shops are getting into the act, too. In Haverhill, for instance, the annual holiday stroll expects to attract 5,000 potential consumers to the downtown area, where stores are offering specials of their own, said Jennifer Cantwell, program coordinator at the Haverhill, Mass., Chamber of Commerce. Since the majority of small businesses can't match the discounts being offered by big-box stores and major retailers, some shop owners are attempting to lure customers with complimentary gift-wrapping and strong customer service, said Betsy Powers, owner of Culinary Concepts in downtown Andover, Mass. "With the holidays coming, we're hoping people will support Main Street and not Wal-Mart," Powers said. "Most of the businesses are mom and pop." The holiday retail season is taking on added urgency this year as consumers have shown they are worried about everything from gas prices to the health of their 401(k) accounts. The downturn in consumer confidence has led to a dramatic decrease in profits at many of the biggest retailers on the planet, such as Target and Macy's. Some retailers, like Circuit City, have declared bankruptcy but still have local stores. Others, like Linens 'n Things, Sharper Image and Tweeter, for example, have declared bankruptcy and closed for good. Let's make a deal Macy's lost $44 million in the third quarter of this year compared to the third quarter last year, although the chain of 856 stores, including Bloomingdale's, is doing better than many of its competitors. "It's a very tough environment," said Jim Sluzewski, a Macy's spokesman. "Customers are spending money carefully. Everyone's sales are down." At Target, sales in August, September and October were off $114 million at its 1,865 stores, including 31 in Massachusetts and eight in New Hampshire. "We were disappointed with the (third quarter) results," said Hadley Barrows, a Target spokeswoman. "And we are anticipating it to continue into the holiday season." As such, retailers are resorting to some cutthroat pricing to not only bring customers into their stores but to get them to spend there as well. "Shoppers have said everything takes a back seat to price this year," Grannis said. Melissa Rozansky, a spokeswoman for Disney stores, one of which is located at the Mall at Rockingham Park in Salem, said that on Black Friday, the day after Thanksgiving, the company is opening 100 of its 220 U.S. stores at midnight. The Mall at Rockingham Park store is one of those. "We are offering 20 percent off everything in that store, from midnight to 10 a.m.," she said. Mall at Rockingham Park spokesman Kevin Flynn said that while Disney is the only store opening at midnight on Black Friday, they aren't the only one offering special deals. Every day, the guest services desk compiles a list of the hottest deals in the mall, which is then handed out to shoppers. Specials one day last week included 15 percent off purchases at J.Jill, 25 percent off everything at Zales, and 20 percent off every item at Timberland. Godiva, meanwhile, was handing out free truffles to anyone who walked in the door one afternoon last week. The mall managers are also doing whatever they can to drive customers to the stores under the Rockingham roof. Anyone who buys a Simon Visa gift card worth more than $250 will get a free ski pass to Waterville Valley or Cranmore Mountain. Anyone buying three gift cards gets a reusable shopping bag and a $1 off coupon for an energy-saving light bulb. "We're doing what we can to get people into the malls," Flynn said. Stores get creative Big-box stores like Wal-Mart and Target are getting equally aggressive. Barrows, the spokeswoman for Target, said the department store will do what it's always done but try to communicate that to customers. "We've had the same strategy since 1994 — expect more, pay less — it's just that we'll be focusing more on the 'pay less' side of the promise this year," she said. The chain plans to put up signs and send out circulars showing how people can buy brand-name items for a fraction of the price they would pay at other retailers. "A handbag that would be hundreds of dollars at a boutique you can get for $50 at Target," Barrows said. Meanwhile, the retailer is putting a lot of energy into its holiday sales period, from Nov. 30 to Dec. 13, including an online promotion offering its "biggest free shipping event ever," she said. Even Wal-Mart, which already has low prices, is offering specials to lure shoppers. "You'll see a lot of rollbacks," Eduardo Castro-Wright, Wal-Mart's U.S. stores chief, told analysts at a conference in New York last week. Grannis, of the National Retail Federation, said other retailers are changing their return policies, making them more liberal following the Christmas shopping season so people have more time to return items they may not want. "The standard return is 30 to 90 days, and some retailers may increase that to 120 days," she said. Others, she said, like Kmart and Sears, have gotten a lot of publicity about offering layaway plans as a way to beat the economic doldrums. "They are trying to provide budget-focused consumers another way to shop," she said. They are also getting philanthropic. At Macy's, for example, customers are being encouraged to bring in letters to Santa, said Sluzewski, the store spokesman. For every letter they get during this holiday season, Macy's will donate $1 to the Make-A-Wish Foundation, up to $1 million. "In this environment, everyone is being cautious," he said. "People are shopping, but our goal is to get them to shop in our stores."
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