Archived Story

Sale-savvy shoppers: Consumers, businesses pin hopes on after-holiday deals
By CHELSI MOY of the Missoulian

Karty Halldorson, left, and his mother Carol took advantage of the after-Christmas sales at Southgate Mall on Friday, along with a legion of Missoula shoppers hoping to save money on markdowns.
Photo by MICHAEL GALLACHER/Missoulian
Retailers lured shoppers back into the stores on Friday with aggressive post-Christmas discounts, hoping to generate some dollars at the back end of a holiday season that hasn't gone so well.

Big red signs that read “For Sale” and “New markdowns” decorated the front windows of Coldwater Creek in Southgate Mall. Macy's in downtown Missoula opened its doors to customers at 6 a.m. Bargain hunters arrived at the mall earlier than usual for day-after-Christmas deals. And many shoppers agreed that Friday's sales outperformed most pre-Christmas discounts.

Gene and Sandy Winters, of Lincoln, waited 20 minutes in the checkout line at Victoria's Secret. Traffic in the parking lot at Bob Ward and Sons Inc. was bumper-to-bumper.

Dee Lumpry, of Missoula, jumped on the J.C. Penney Web site before venturing out into the busy streets and crowded stores. She came away with a pair of jeans for $14.99 - normally $40. A sweater, which she already owns in another color, cost $12.99, down from $36.

Macy's offered closeouts on mattress sets, and threw in a 19-inch flat-panel TV with purchase. Wal-Mart announced it will begin selling Apple's iPhone 3G beginning this weekend, according to the Washington Post.

“We're a bit more promotional this year than in the past,” said Brian Murray, general manager of the Missoula Macy's.

That's in part because of the economy, Murray said. But even worse was the winter weather and freezing temperatures that hit Montana and parts of the Northwest in the week leading up to Christmas.

Missoula is a shopping destination for people living in Kalispell, Helena, Butte, the Bitterroot and even Idaho, said Tim Winger, mall manager. Snowpacked roads and freezing temperatures affected the number of shoppers willing to travel from out of town.

Nationwide, this shopping season is expected to post the biggest losses in decades. According to preliminary data from SpendingPulse, which tracks purchases paid for by credit card, check or cash, retail sales fell between 5.5 percent and 8 percent during the holiday season compared with last year. Excluding auto and gas sales, they fell 2 percent to

4 percent, according to SpendingPulse.

Retailers at Southgate Mall are looking to parallel revenues in 2007, Winger said. The beginning of 2008 looked positive, but sales slowed with the economy and as gas prices increased midway through the summer and into the fall.

November was better than anticipated, he said. Losses were confined to single digits.

“In the last quarter we saw some losses (compared) to last year,” he said. “It was pretty expected.”

Retailers remain optimistic, however. They're banking on post-Christmas discounts and shoppers cashing in gift cards as ways to clean out inventory and generate cash flow to purchase new 2009 stock.

By the number of cash-strapped shoppers toting bags around on Friday, neither the economy nor the weather was keeping them from finding the best deals.

Lois Taylor, of Helena, already was wearing the brown snowboots she had just purchased from J.C. Penney. They typically cost $50, but Taylor paid $35.

Taylor bought some much-needed items at a good price, thanks to a $100 gift card she received from her grandson at Christmas.

“I didn't expect to spend this much, but everything was on sale,” said Taylor. “If I didn't have a gift card, I wouldn't have bought anything. I couldn't afford it.”

Jeans at Hollister, which typically cost upward of $60, were selling on Friday for $40. Lori Hughes and her two teenagers from Anaconda took advantage of a little financial relief, and bought two pairs.

Many people buy jeans with their Christmas gift cards, Murray said. That's why Macy's is offering a $10 in-store value to shoppers who purchase jeans.

At Hastings in Missoula, iPods and electronics are on sale because young adults, the age demographic that receives the most gift cards, want those items, said Topher Shipp, front end manager. But the store is not being overly aggressive in its post-Christmas deals, he said.

Unlike other retailers, Hastings actually benefited from the recent cold snap. Customers stocked up on movies and video games before hunkering down in their homes, Shipp said. Plus, with Hastings selling used CDs and DVDs as well as new items, the store ended up outperforming its expectations, he said. Now it's a matter of maintaining.

One thing Shipp has noticed lately is increased sales of used items, which are cheaper than buying new. More people are buying and selling used CDs and DVDs. And on Friday, shoppers were returning more expensive newer items received as Christmas gifts in exchange for several used items.

“It's getting more out of your Christmas gift,” Shipp said.

Not everyone, however, thought the discounts were enough on Friday.

The Winters traveled from Lincoln in search of on-sale Christmas decorations, among other things. But if it wasn't

75 percent off, it wasn't worth their time, they said.

“So far, I haven't been too impressed,” said Sandy Winters. “If it's going to be in boxes most of the year, it'd better be 75 percent off.”

The Associated Press contributed to this story. Reporter Chelsi Moy can be reached at 523-5260 or at chelsi.moy@missoulian.com.


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