By Jason M. Reynolds
Staff Writer
National retail experts are predicting a 4 percent increase in Christmas gift spending this year, but many stores aren't taking it for granted that the holiday will be merry, and are pulling out the stops to lure shoppers.
"For Ace, like other retailers, this (Friday) is an important date for us," said John Rutter, marketing analyst for Ace Hardware of Chattanooga. "The doorbuster specials are there while supplies last. There is a sense of urgency there."
Friday, also known as Black Friday, is the theoretical date when many retailers break even for the year. Shoppers will be lined up outside stores well before dawn to grab specials.
The 4 percent figure comes from the National Retail Federation, which has projects spending this year to hit $474.5 billion. That rate, however, is the smallest gain since 2002 when sales rose 1.3 percent, and is below the 10-year average sales gain of 4.8 percent.
"Retailers are in for a somewhat challenging holiday season as consumers are faced with numerous economic obstacles," the trade group's chief economist Rosalind Wells said in a statement. "With the weak housing market and current credit crunch, consumers will be forced to be more prudent with their holiday spending."
vouchers at the door
Retailers will open early Friday and offer deep discounts on select items to draw shoppers, according to retail group.
J.C. Penney will open at 4 a.m. Friday with doorbuster prices, according to company ads.
Circuit City will open a little later at 5 a.m., said spokesman Jim Babb. Since select items on sale will be limited in quantity, workers will give vouchers to people in line before the opening, he said. Shoppers will be let in the store in groups to avoid overcrowding the store, he said.
"We try to be respectful to people who've been there in line," Mr. Babb said.
Some stores, however, will wait for a more normal time to open.
Clothing retailer Frankie & Julian's on Frazier Avenue will open as normal at 10 a.m., said assistant manager Juliane O'Neal. The Grapevine on South Broad Street also will open at 10 a.m. Friday, said manager Daniel Shartle.
electronic doors never shut
Some shoppers may decide to head online to find deals. The Monday after Thanksgiving is known as Cyber Monday and has become an important sales date as people returning to work log onto the Internet and browse for deals. Last year 61 million people shopped online at work on Cyber Monday, according to the National Retail Federation.
The season after Black Friday isn't make or break for Frankie & Julian's, although the holiday period is its busiest time, Ms. O'Neal said. Christmas has traditionally been the most important time for The Grapevine, Mr. Shartle said, but the store is gaining sales volume throughout the year.
"We're getting steady year round," he said. "But this time of year does propel us toward the black."
Frankie & Julian's sells sweaters, coats, down jackets, tights, boots and other apparel, she said, and has added jewelry, perfume, hand creams and other items for the holidays. The Grapevine sells Vera Bradley bags, Life is good clothing, disc golf items and a new item called mountain boards, which are like snowboards but have all-terrain wheels, he said.
Ace stores will open at 7 a.m., Mr. Rutter said. Hot items will include a 7-inch digital photo frame and a radio-controlled helicopter, he said.
The local hardware franchise stores have done well despite a slowing real estate market, he said, and have had a slight increase in year-to-date sales.
"We anticipate the economy will have some affect on some retailers, but we are happy to be where we are right now," Mr. Rutter said. "The slump has not affected us. People are doing smaller projects at home, and that's what we specialize in."
Mr. Babb of Circuit City declined to discuss the chain's holiday sales projections, but said the company is "cautiously optimistic."
E-mail Jason M. Reynolds at jreynolds@timesfreepress.com
