Savings Experiment: Snow Removal
The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
The holidays have ended, and the real sales have begun. Those choosing to sacrifice sentimentality for savings found retailers only too willing to help, as prices were slashed in the wake of the Christmas rush. Recipients of gift cards stand to see their purchasing power extended, as well, now that redemption time has arrived, and retailers are looking to squeeze in any extra sales they can to pump up their top lines before the books close on the fiscal year, which, for many, comes at the end of January.
Toys "R" Us has offered a deal on Nintendo (NTDOY) Wii games, with the second coming at half price, and Target (TGT) is nearly halving the price of wine glasses and dropping the tag on an argyle women's sweater by nearly a third. Walmart (WMT), which kicked off its cuts at the end of September, is throwing a $50 gift card on top of any Microsoft (MSFT) Xbox 360 buy.
Post-holiday sales aren't unusual, but there's an extra sense of urgency this year. The holiday shopping season began with an anemic Black Friday, and a snowstorm on the East Coast cost retailers a day of shopping over the weekend, depriving them of revenue from what is usually one of the busiest shopping days of the year.
The National Retail Federation still puts its number for the year at a decline of 1%, as of December 20, 2009, while the International Council of Shopping Centers reaffirmed its prediction of a 2% increase two days later. This follows a previous call by the ICSC of a 0.4% increase as the storm hit on December 19, 2009. The preliminary estimate from MasterCard's SpendingPulse unit is an up-tick of 3.6%, which is being billed as tentative.
Retailers are trying to salvage the season in different ways. Luxury depot Saks (SKS) briefly offered discounts of up to 70% Saturday morning before returning to 40% off. Brooks Brothers was sticking at 50% off, and JCPenney (JCP) served up more than 100 "doorbusters" when it opened at 5 AM on the day after Christmas.
For the retailers, the time for winning is over, and the goal now is to make the most of where the holiday season put them. With the fiscal year coming to a close, there are few opportunities left to pump up the books. When these companies report their results, it is likely to come at a crucial time in a recovery (if we're in one). Hopefully, the bad news won't cause consumers and investors to withdraw and throw a bump in the road.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
