Strange Sightings in Retail Land

"It was day after Christmas and all through the stores, not a creature was stirring, not even a sales hunter." It wasn't that bad, but I was really surprised by the very small numbers of people I am seeing out in the stores. In recent years, the days immediately following Christmas have been as busy as those immediately before. In my personal experience, that wasn't the case in 08.

On Christmas morning in our huge family, many of our family members had things that didn't fit, didn't work, or wasn't exactly what was wanted. I thought that I would be hauling at least 6 or 7 in the Suburban, but fear of the lines led to trading and making due for most. That lead to only four, with me driving. We had four stops on our list -- Academy (sporting goods), Sports Authority (sporting goods), Kohls, and JC Penny.

Even with the small number in our group, I was convinced that this mission would take hours, if not days. In reality, if the wife didn't go, we would have been done in less than two hours. She figured out how to make it last much longer.

The Sports Authority was nearly empty when we got there. There was around twenty in the entire store. At no time there was no more than two or three in the checkout lines. When we were ready to leave, our check out was empty.

Kohls was slightly better, but certainly nothing for management to get excited about, although the sales should have made it quite the attraction. The prices were extremely low on many items and you would think it would have attracted a crowd. We were checked out in no time.

I received a gift card to Academy and was ready to go, and the specials were really impressive. I walked out with a couple of college shirts representing my son's shool and a baseball cap for my Astros for less than $30. I even had dollars to spare. In spite of the low prices, the lines and crowds were typical of pre-Thanksgiving. They were not big at all.

Finally there was JC Penny. The sales weren't as strong and neither were the crowds. Very disappointing indeed!

According to Master Card, which monitors retail sales in general and not merely their own, Christmas sales plunged by at least 2 to 4 percent. In a business environment that demands an annual increase in sales on Christmas, this is unacceptable. This is expected to be a difficult year for retail indeed.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Ominous Signs for Gift Card Tuesday

We all know about Black Friday -- the day after Thanksgiving where people finally buy enough to put businesses in "the black." In recent years we have had Cyber Monday (the Monday following Thanksgiving in which people make most of their holiday online purchases) and I have been talking about Gift Card Tuesday both on the radio and online.

On the first Tuesday of February 2009, retailers will announce how much they made from gift cards sold in November of this year. Companies don't know based on the cards sold, ironically, but from the purchases that comes from the cards. Gift Card Tuesday will not be very pretty this time I am afraid.

This is due to several reasons. The first reason is obvious -- spending has reached a new low for consumers on this holiday season. People are extremely fearful about their finances and are reducing costs at every opportunity.

A second reason is closely associated with the first and that is the concern about the large number of retail businesses that are going under. There is sense that many more will go under right after Christmas and people will be stuck with cards that have little to no value. What could keep these companies in business -- an influx of new customers buying cards -- may not happen because consumers believe these business may become history. One of those interesting paradoxes of business. Because of this paradox, many more businesses may join the ranks of Circuit City (see video above) that are now out of business.

With the many other more urgent and pressing headlines, we haven't seen much about the economic impact of gift cards lately. I am sure we will in February.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

When will Christmas Commercials End?

Usually I complain about Christmas starting too early. I saw commercials as early as October last year. Well, here we are late in January and we are still seeing Christmas theme ads.

No, it is not that "Christmas is right around the corner" spot and you better order online quickly, it wasn't a reminder to pick up something for an in-law, or a list of suggested stocking items. Instead we are told by Special K that you can stop looking like Santa Claus by choosing a large variety of their weight conscious products.

Tonight, I saw a Verizon commercial that reminds me that you can still find their cell phones still on sale. This ad comes with Christmas lights, music, and even a festive phone that reminds us of the season.

I like Christmas. I actually hate to see the season end. But I am not sure what I will do if I see one more Christmas spot.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Christmas in October?

I admit, I have been watching closer than in the past, but I can't believe how early in the year it is to see a Christmas commercial. Here we are on October 10th and I saw a commercial for a company that will set up your Christmas lights. Meanwhile I have noticed more Christmas displays in malls earlier than in any time in my memory.

Last year I wrote the following:

"Before Halloween had come and gone, I saw my first Christmas commercial. I think it was for a car, I don't remember, but it may be the earliest commercial I have seen for this important holiday.I believe I have a pretty realistic view of the past and I am fairly reasonable about not looking at my childhood through romantic eyes, but I believe that commercials for Christmas didn't usually begin until a week before Thanksgiving. That has been creeping to an earlier date year after year to where, eventually, it will probably begin after Independence Day, bringing new meaning to Christmas in July.I understand that Christmas is important. More consumer goods are bought between Thanksgiving and Christmas than any other time of the year. The more that is spent, the more fuel for the economic fire. However, I just want to encourage everyone to not forget the reason for this important holiday season."

I remember that it was the week of October. This year it was October 10th when I saw the first Christmas commercial. My advise this year is the same as last...don't forget the real reason for the season. The volume of commercials we will likely see may make that goal difficult to achieve.