Retailers report holiday shopping burst
But many wary of the next few weeks
Bill Ryan/The Gazette
Retailers, including those at the Francis Scott Key Mall in Frederick, hope deep discounts boost holiday sales.
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The traditional holiday shopping season started well last weekend, but many Maryland retailers are taking a wait-and-see attitude.
More shoppers than expected headed to Maryland stores over the Black Friday weekend, according to retailers and surveys. Feedback from members of the Maryland Retailers Association this week has been encouraging, said Thomas S. Saquella, president of the organization.
"It shows shoppers are responding to efforts to attract them, such as promotions and sales," he said.
But Saquella cautioned against reading too much into last weekend, noting that late November was good for retailers last year but then the crowds thinned out in December.
"Black Friday is always big," he said. "We have to wait and see."
Janie Griffin, co-owner of The Little Shoebox, an upscale shoe store with sites in Bethesda and Ruxton, said she has tempered expectations. She is offering a 30 percent discount to lure shoppers.
"It is definitely going to be slower-paced than previous years, and there may be very few retailer shoppers," Griffin said. "Everybody is going to be putting their merchandise on sale."
The state retail group is not forecasting any gain in holiday sales this season for the first time since it started to predict such sales more than two decades ago.
Nationally, more than 172 million people visited stores and Internet sites last weekend, up from some 147 million a year ago, according to a survey by the National Retail Federation. Shoppers spent $41 billion, up 7 percent from a year ago, over the weekend, beating expectations.
Electronics and clothing were big sellers, the survey said.
While Friday was the busiest day, more people shopped on Thanksgiving Day than last year, with traffic up 48 percent.
Another survey by ShopperTrak RCT found that sales of general merchandise at stores on Friday alone rose 3 percent from a year ago to $10.6 billion.
Tough competition
Smaller retailers are having to compete with deep discounts and early markdowns at large department stores, affecting their bottom line.
Robin Greger, co-owner of the B Scene blue jeans store in Potomac, said she started discounting several weeks before Thanksgiving, earlier than last year. And what were once 20 percent discounts are nearing 40 percent.
"It's affecting everyone — everyone is more cautious instead of being so extravagant," Greger said. "Instead of two or three pairs of jeans, they might just buy one."
The recession is also hurting stores such as Shoe Train, a children's shoe store also in Potomac.
People are buying fewer shoes and are more concerned about prices this year, said owner Ed Jurgrau. "And they're extending their purchases and waiting longer to buy the shoes."
At Francis Scott Key Mall in Frederick, the level of shoppers on Black Friday surprised many retailers, said mall marketing director Christina Steinbrenner. Retailers told mall executives that they had more sales compared with the same day a year ago.
"People were really bargain shopping and came with a mission, not the usual leisurely holiday spirit," Steinbrenner said. "We were really surprised. I think we're going to do OK this holiday season."
At Westfield Shoppingtown Wheaton, crowds of Black Friday shoppers checked price tags against their budgets. Miriam Leon arrived at Best Buy at about 4 a.m. to search for a television set but did not have much luck. However, she found other bargains that helped her stretch her holiday shopping budget.
"I've only spent about $200," said Leon, an assistant manager at a fast-food restaurant. She said she shopped for 30 relatives last year but had to cut that number in half this year because of a tighter budget.
The Unique Thrift Store in Silver Spring was packed with customers seeking deals on items such as $2 books and $5 jeans the store offers year-round.
The recession has boosted sales at the thrift store, said Ellen Bogage, a spokeswoman.
"We definitely have more staff [on Black Friday] because people like to shop after Thanksgiving, sale or no sale," Bogage said. "Because of the economy, we have even more customers coming in."
Buy local
Rockville, along with its economic development corporation and chamber of commerce, has launched a Buy Rockville campaign to urge residents to support local retailers and restaurants during the holiday season. The campaign includes a BuyRockville.org Web site, targeted posters and the suspension of downtown garage and street parking fees last holiday weekend.
Other Maryland cities, including Baltimore and Annapolis, also have "buy local" campaigns.
Staff Writers Jeremy Arias, Erin Donaghue, Robert Dongu, Rebecca McClay, Patricia Murret, Bradford Pearson, Meghan Tierney and Andrew Ujifusa contributed to this report.
Retail expert Rick Segel, author of "Retail Business Kit For Dummies," offers merchants the following tips to increase sales this holiday season:
Stock shelves with items that have the "wow factor" to bring in customers.
Get people talking about the store through creative promotions, eye-catching window displays, in-store contests and popular merchandise.
Train clerks on how to engage shoppers without alienating them. Remind them that the store benefits the most when a customer purchases multiple items.
When customers make a purchase, give them a coupon for 15 percent or 20 percent off the next purchase. Make the coupon valid for only the next six days and not that same day to get them to return.