Post-Holiday Prices Pull in the Shoppers : But Christmas Selling Season Is Seen as Little More Than Mediocre for Retailers

‘Twas the day after Christmas, and in Pasadena scores of bargain hunters were stirring--even if it was only 4:30 in the morning. Drawn by a half-price sale at Stats, a floral supply store crammed with holiday wrap, wreaths, ornaments and artificial trees, these die-hards gave new meaning to the term early bird.

Bruce Matthews, a physician from Arcadia, waited in a rapidly growing line until Stats’ doors opened at 5 a.m., then made a beeline for a far corner of the store. Minutes later, he triumphantly loaded onto his shopping cart the day’s prize: a $450 rocking horse imported from England that he had been coveting for his 6-month-old daughter.

“You couldn’t ask for more than this,” he beamed, looking weary but thrilled at the prospect of buying the fancy toy at 50% off.

Burning Candle at Both Ends

Throughout the Southland and across the nation, shoppers crowded outside retailers’ doors Thursday, eager to spend freely for Christmas merchandise with post-Christmas prices. As they have in past years, many merchants decided to burn the holiday candle at both ends--opening early and closing as late as midnight.

Even if shoppers continue to turn out in force this weekend, however, the Christmas selling season is expected to be little more than mediocre. Throughout the season, the best that major merchants have been able to muster is cautious optimism.

For Sears, Roebuck & Co., the nation’s No. 1 retailer, sales on Monday and Tuesday were much stronger than expected after relatively soft business for most of December. “Consumers obviously waited until the last minute to shop,” spokesman Ernie Arms said.

The traditional Thanksgiving-to-Christmas shopping season was six days shorter than last year and “it kind of caught up with them,” Arms said, adding that “it’s still touch-and-go whether our sales for the total period will be slightly higher or slightly lower than last year.” The last time Sears’ December sales fell from the previous year was in 1978, he said.

Despite three hectic days before Christmas, “overall (holiday) sales were somewhat flat, as predicted,” said Mary Lorencz, a spokeswoman for K mart, the nation’s second-largest retailer.

Analysts continue to expect the industry’s December sales to be a modest 5% to 6% ahead of those for the same month last year. Christmas will be “satisfactory--not strong, but not a bust, either,” said Monroe Greenstein, an analyst with Bear, Stearns & Co. in New York. “It’s probably the best you could have expected.”

By 8 a.m. Thursday at Carlsbad’s Plaza Camino Real shopping mall, latecomers to close-in parking lots were greeted by “full” signs. At one Hallmark card shop, customers stood four deep waiting for bargains on Christmas cards and wrap.

Sales at Bullock’s in San Diego’s Mission Valley Center were “running at least 8% ahead of last year” by 9:30 a.m., general manager Jack Larsen said. As many as 500 shoppers had jockeyed for position outside the store’s entrances before the 8 a.m. opening. Larsen stationed himself in front of an escalator to help protect shoppers as the crowd pushed its way toward items marked down by as much as 50%.

Early Buyers Avoid Lines

“I didn’t know so many people had the gumption to get up this early,” grumbled one Bullock’s shopper, clutching a bag filled with bargain-priced Christmas decorations and wrapping paper. He finished his purchase early enough to avoid lines that grew to 30 or 40 persons.

Although heartened by the day’s activity, Allen Questrom, chairman of Bullock’s, indicated that the season has proved disappointing. “We put a lot of effort all year long into making this Christmas a special thing for our customers,” he said. Sales “did come on stronger over the weekend, but to go through the whole month day by day and not see (strong gains) takes some of the joy out of the season for our folks.”

Edgar S. Mangiafico, chairman of May Co. California, was more upbeat. “The crowds are good,” he said. “As far as the season is concerned, it looks pretty good.”

Carter Hawley Hale Stores, the Los Angeles-based parent of the Broadway, Neiman-Marcus and Contempo Casuals, reported good business in the four days before Christmas. “We’ll show modest increases over last year,” spokesman Bill Dombrowski said. Despite warm weather in California, which accounts for 70% of the company’s business, “it was a sensational year for sweaters.” However, sales of some basics such as men’s underwear and socks proved disappointing.

Of the four major Southern California chains, J. W. Robinson’s Christmas appears to have been the merriest. “The weekend before Christmas was good--at or above plan each of the days,” said Steve Regur, vice president of marketing. As a result, despite weaker sales earlier in the month, the chain foresees double-digit gains for December.

Many Southland malls reported that Thursday’s traffic was up compared to the day after Christmas last year. Lured by sales offering savings of 50% and more, about 50,000 shoppers visited South Coast Plaza, an increase of about 10%, said Carol DiStanislao, a mall spokeswoman.

“Although we get a lot of returned merchandise on the day after Christmas, most of the people today are making new purchases because of all the sales,” DiStanislao said.

Promenade Mall in Woodland Hills “basically had a real good year, much better than last,” said manager Keith Anderson, who added that retailers this year seemed more aggressive and more willing to put merchandise on sale during the Christmas season.

Taking advantage of a trend that is spreading to malls around the country, San Diego’s Fashion Valley Center this year sold more than $238,000 in gift certificates that can be honored by any of the mall’s department and specialty stores. That broke last year’s record of $195,000.

“People use them because it makes shopping very easy and everybody gets what they want,” spokeswoman Marilee Bankert said. “(Shoppers) don’t have to run to one store for Aunt Millie and then to another for their nephews and nieces.”

Contributing to this story were Times staff writers Daniel Akst in Los Angeles, Robert Hanley in Costa Mesa and Greg Johnson in San Diego.