Shoppers Flood Stores, but Not All Take Plunge : Business: Retailers report big crowds as holiday season begins, but consumers appear to be awaiting sales.
Responding to the lure of discounts and promotions, cautious consumers flocked to stores nationwide Friday to determine if the early bird gets the bargain, but many ended up being only window-shoppers.
On what is traditionally the launch of the holiday shopping season, sales were fairly strong across much of the nation, but business was not as brisk as a year ago--a sign that consumers are increasingly holding out for end-of-the-season sales.
Many shoppers said Friday they were more upbeat about the economy, confirming recent nationwide polls that show a rise in consumer confidence. However, Friday’s sales reports suggest that--like last year--there will be a late-season sales surge.
That cautiously upbeat mood was apparent in the Southland, where retail sales have been lackluster for years. Holiday sales in California are expected to lag behind the rest of the nation this year, although sales on Friday were higher than anticipated.
“We’re feeling a little bit more comfortable about the future,” said Blake Fienchamp, 63, of Huntington Beach, a retired traffic design engineer who was shopping Friday at Westminster Mall. “We’ll spend top dollars for the right thing, but if there’s a sale, we’ll take it.”
“We’re seeing a tremendously cautious and savvy consumer who is not ready to spend a lot right now,” said Kurt Barnard, a New York-based economist and publisher of the Retail Marketing Report newsletter. “Right now, consumers are comparing stores and comparing products. The key words are value and bargains .”
The day got off to a slow start at the Glendale Galleria, where parking spaces were in abundance and most shoppers headed for early-bird specials. But as the day wore on, the shoppers jammed the 260-store mall and drivers searched for a space to park.
Among the Galleria shoppers was Valerie Thompson, who said she plans to spread her shopping throughout the holiday season.
“I know the sales tend to get better if you wait,” Thompson said.
Terry Norton, 48, of Burbank says he feels confident enough in his business and the economy to boost the family’s $2,000 holiday shopping budget.
“We all held back the last few years,” said Norton, a contractor who installs and maintains elevators. “I think the future looks better for California.”
But that doesn’t mean he and his wife, Artie, 48, are becoming less selective in what they buy. “We are looking for name brands--on sale,” said Norton, who along with his son-in-law had purchased five pairs of pants at the Robinsons-May store at 40% off.
Many Southland retailers have responded to consumer demand for more bargain shopping days. Target and Montgomery Ward served up two-day sales. The Robinsons-May, Broadway and Ross Dress for Less chains are promoting three-day events that extend through Sunday. Other major retailers such as Bullock’s, J.C. Penney, Sears, Nordstrom’s, Mervyn’s and K mart also had sales promotions.
“I catch these sales every year the day after Thanksgiving,” said Maria Alva, a receptionist in a Canoga Park dentist’s office. “It’s so much cheaper. Lots of things are 50% off.” Alva arrived at Northridge Fashion Center at 7:45 a.m. “I was the first one here. I was like that Mervyn’s commercial, looking in the windows saying: ‘Open, open open,’ ” she said.
Finding a place to park was the biggest challenge facing shoppers Friday at Northridge Fashion Center. The mall opened at 8 a.m. and quickly filled to capacity, with a steady parade of new arrivals driving up and down each row searching for spaces.
“A lot of people are just looking at this point,” said a salesman in the Bullock’s men’s clothing department. “Or, it’s a tradition, they come every year. If they see something special or something they want, they’ll buy it. That’s about it.”
“The day after Thanksgiving is traditionally the biggest shopping day of the year, but the day after Christmas is becoming bigger because consumers are more value-conscious and believe they can get better bargains at post-Christmas sales,” said Russ Joyner, manager of the Fox Hills Mall in Culver City.
However, Joyner said the turnout was up from last year at Fox Hills, and many of the mall’s customers--such as Larry Carter--were spending heavily.
Carter said he would buy the bulk of his holiday gifts Friday. The early-bird sales at department stores were a big factor in planning his holiday shopping, he said.
“I got a pair of $40 jeans for $17,” he said. “You can’t beat that. . . . I think the sales after Christmas are better, but who needs presents just after Christmas?”
Friday seemed to bring business as usual for downtown Laguna Beach, which escaped damage in last month’s disastrous firestorm.
Crowds surrounded street musicians, tourists lined up outside of an ice cream parlor at the intersection of Park Street and Pacific Coast Highway, and the sidewalks were wall-to-wall people.
But shop owners said that not all those strolling through town on a warm, sunny day were shopping.
“If I had one wish for Christmas, it would be that all the television channels . . . would let people know that Laguna Beach is open for business,” said John Hansen, whose family has owned Axline’s Village Shoes since 1955. “Today, I guess that business is down 50%.”
Merchants at South Coast Plaza in Costa Mesa expected as many as 100,000 shoppers to flood the Orange County shopping center on Friday. An army of 90 valets was on hand to park cars for shoppers, said Stephen Paliska, who oversees the mall’s valet service.
“On a good weekend day we’d usually have about 15 valets working,” Paliska said.
Rhona Juengst of Alison Viejo was among the early birds at South Coast Plaza. She was second in line when more than 100 shoppers gathered for the annual “Big Sale” at L.A. Eyeworks’ South Coast Plaza location.
Juengst purchased a pair of tortoise-shell frames. One was marked down to $90 from $180, the other reduced from $165 to $35. “That’s it,” she said. “I’m going home.”
Officials at Buenaventura Mall in Ventura said business there was noticeably higher than in previous years, and that people were doing more than just looking.
“People are still looking for bargains, but I think their outlook on the economy is up,” said mall spokeswoman Karen LaChance.
LaChance said the mall and its individual stores had made a tremendous push to bring people to the shops this year.
“We knew this was the time we needed to get people here,” she said.
The bargain-hunting atmosphere was also prevalent in other parts of the country.
Near Seattle, the shopping mood was mixed at the Alderwood Mall on Friday because many shoppers are concerned about the area’s economy.
Much of the Seattle area gets its holiday spending money from Boeing Co., which this year not only laid off more than 9,000 workers but canceled its annual Christmas bonuses for employees.
This was the first time in a decade that the aircraft manufacturer withheld the bonus checks, which last year pumped $300 million into the local economy.
“Last year everybody was leery because the Boeing layoffs were starting,” said Nordstrom shoe salesman Peter Bangs. “This year, people have prepared themselves for this Christmas season by buckling their belts.”
“I think the mood is a lot more desperate this year,” said Brad Dell, 29, a biotechnology researcher from Seattle. “I have a friend who just got laid off by Boeing. I think people are being more conservative. At least the people that I know.”
Similarly, the weak New England economy put a damper on sales in the Boston area. For example, there were relatively few shoppers at the vast South Shore Plaza in Braintree, Mass. In the shoe department at the mall’s Lord & Taylor store, sales clerk Susan Fuller stood before a bargain rack and expressed gratitude for the dearth of shoppers.
“Makes it easier for us,” she said.
In contrast, Atlanta’s economy is stronger and attitudes have been buoyed by the fact that the city will host the next Summer Olympics. Rain and chilly temperatures on Friday morning didn’t keep shoppers away from the malls there.
By noon the crowd that poured into the Cumberland Mall on Atlanta’s northwest side was estimated at 50,000 people, with at least 50,000 more expected before close of business.
Most shoppers seemed upbeat as they hurried through the mall catching the early-bird bargains at the larger department stores. Most said they are spending more money this year than in previous years.
“We’ve bought mostly clothes,” said Bill Wilson, an electrician for AT&T; in Atlanta, as he waved two shopping bags. “We’ll probably buy more this year than last, and thank God we can. My wife and I both have excellent jobs. I’m making more money now than I ever have.”
Some consumers said they were buying practical gifts--among them Dave Usechek, 47, of Northglenn, a Denver suburb. He was carrying bags of jeans, sweat shirts, robes and nightgowns.
“This year we decided to go the practical route and satisfy basic needs,” said Usechek, the principal of an elementary school. “Last year we did wish-list stuff, like a new CD player. This year it feels good to just get the stuff we need, and we’ll definitely spend less.”
Toys, of course, were a big seller throughout the country. Pamela and Arthur Garey of Houston were busy buying toys for their 2-year-old daughter on Friday.
The Gareys say this will be one of their biggest Christmases ever, primarily because their daughter has caught on to how the Santa Claus business works. The demanding tot requested toys that talk, baby dolls, an electric train, a tricycle and an electric Barbie doll carrier.
“The thing is, we’re buying them!” Pamela Garey said.
The demand for toys even attracted consumers who don’t normally shop the day after Thanksgiving--such as Julie Molis of Beverly Hills, who arrived at the Beverly Center early to obtain the hot-selling Mighty Morphin Power Rangers action figures for her son.
“The stores have been selling out of this toy,” she said. “We arrived early--about 9:50--because he had to have the Rangers.”
After a snowstorm ended in Minnesota on Thursday afternoon, consumers warmed the hearts of retailers by spending heavily at places such as the Mall of America in suburban Minneapolis.
“Business is brisk today,” Susan Austin, a spokeswoman for the mall said Friday. “Overall, we expect a 3% to 5% increase in holiday season sales by Christmas.”
To be sure, the last 10 days before Christmas are usually the strongest selling period for retailers. And while the day after Christmas has become increasingly popular with consumers in recent years, the day after Thanksgiving remains important.
Consider the Del Amo Fashion Center in Torrance. The mall estimated that 156,250 people shopped there Friday, three times as many as on an average day. And Friday’s shoppers spent an average of $46 each--or a total of almost $7.2 million--about three times normal daily sales.
Also contributing to this story were Times staff writers and correspondents Jesus Sanchez and Scott Sandell in Los Angeles, Greg Johnson, Willson Cummer, Bert Eljera and Frank Messina in Orange County, Jill Bettner in the San Fernando Valley, Constance Sommer and Matthew Mosk in Ventura, Doug Conner in Seattle, Lianne Hart in Houston, Elizabeth Mehren in Boston, Ann Rovin in Denver and Edith Stanley in Atlanta.
