Deep Discounts Draw Throngs of Shoppers : Business: Southland is expected to post 6% increase in holiday sales. But retailers still had plenty to get rid of.

Consumers flocked to Southland malls and other retail centers nationwide Monday to take advantage of what some called the biggest day of price-cutting in years.

The traditional day-after-Christmas clearance sales were even more evident because consumer demand--although up from last year’s holiday season--did not meet the heady expectations of most retailers, analysts said. Thus, stores had much more unsold merchandise to clear.

“The rip-roaring Christmas didn’t materialize and retailers marked down merchandise until the pencil wore away,” said Kurt Barnard, a New Jersey-based economist and publisher of the Retail Marketing Report newsletter. “The discounts today are the biggest in a dozen years and consumers are going for these bargains.”

In Southern California, the surge of shoppers and sunny weather was welcomed by retailers who were somewhat disappointed by the turnout on a drizzly Christmas Eve. However, Southland merchants appeared to enjoy a slightly larger increase in overall holiday sales this year than the nation as a whole, industry analysts said.

Although final tallies are not complete, Southern California is expected to post a 6% increase in overall holiday sales over a year ago, compared to a gain of between 5% and 5.5% nationwide, said Richard Giss, a partner in the retail services division of accounting giant Deloitte & Touche.

“For Southern California, that’s a real strong performance relative to recent years,” Giss said. “Nationally, that increase is acceptable, but a little disappointing considering expectations.”

On Monday, Southland retailers--who successfully used sales promotions in recent years to cope with a lingering state recession--showed that they have become masters of the mark-down. Most offered big discounts for the day, with even bigger price cuts available to early birds.

Consumers responded to these deals.

Sharon Packer, who said she had not shopped on the day after Christmas in 20 years, was one of nearly 50 people gathered for the 8 a.m. opening of the Broadway in the Beverly Center.

“I’m here early because of the coupon,” Packer said, pulling a clipped certificate offering an extra 10% discount to those buying before 11 a.m.

Tom and Tori Venturi of Los Angeles, also arriving early at the Broadway, said they had purchased gifts for their children but had put off shopping for each other until after Christmas.

“We waited because you get more bang for your buck today,” Tom said. “We’re here early and should be able to get in and out in about an hour.”

“Make that two hours,” Tori said.

At Fox Hills Mall in Culver City, the CardAmerica card and gift shop opened about half an hour early at the insistence of a line of customers, said store manager Kim Wiley.

“They said, ‘Let us in. We have money to spend,’ ” Wiley said.

And upstairs--at King’s Hallmark card shop--about 50 people buzzed outside until the store lifted the gates.

“Unbelievable!” shouted Denise Williams, taking photographs of the crowd as they rushed into the small shop. Williams, in a training program for Hallmark store ownership, said the crowd was responding to discounts of 50% on cards, gift items and chocolate.

Laura and Gary Wolfe of Irvine gave up on shopping after spending two hours being jostled by bargain-hunters while trying to buy shoes at Nordstrom in Costa Mesa’s South Coast Plaza. Salesclerks handed out numbers to customers who wanted to be served.

“We found out we were 298th,” Gary Wolfe said. “I tried to bribe a clerk to wait on us, but he wouldn’t take it. So we gave up. I figured it would take half my life, that my feet would grow before I got to try anything on.”

At Topanga Plaza in Canoga Park, dozens of holiday shoppers had lined up in front of department stores by 7:30 a.m. By midday, every one of the mall’s 5,400 parking spaces was taken.

“Buy, buy, buy! That’s what we’re here for,” said Anastasia Hendrix, who stood in a long line at the Gap, holding a striped turtleneck. “I don’t do any shopping the day before Christmas. There’s no incentive.”

Some of the largest incentives were offered by department stores, which opened one to two hours earlier than usual. All the major chains--Bullock’s, Robinsons-May, Broadway and Nordstrom among them--offered up to 50% off on many items.

I. Magnin entered the beginning of its final post-Christmas sale period by offering 70% off on dresses. R. H. Macy & Co., operator of Bullock’s and I. Magnin, last month announced that would close the 12-store I. Magnin chain by early January. On Sunday, the company said that three I. Magnins--in Pasadena, Palm Desert and Palos Verdes--would close permanently at 6 p.m. today.

Five of the I. Magnin stores will be converted to Bullock’s or Macy’s. Saks Fifth Avenue will acquire four of the remaining seven stores.

Retailers that traditionally cut prices in December--among them sporting goods and consumer electronics chains--were also offering their lowest prices of the year.

Some of the largest price cuts were found at specialty apparel stores and in clothing sections of department stores because garment sales continue to suffer from a three-year slump nationwide. Even with the lure of lower prices, many consumers have showed little interest in clothing during the season.

In San Diego, Cindy Young browsed through a Limited clothing store, but made no purchase.

“We didn’t buy a lot of clothes this year, just a lot of household goods,” she said. “We bought bunk beds for the grandkids and a set of pots and pans for my mother-in-law, just practical things that they’ll have for a long time, instead of clothes and things they don’t need.”

Dayton Hudson Corp.--operator of the Mervyn’s and Target chains--said clothing sales were slow Monday. Clothing traditionally accounts for about 80% of Mervyn’s sales.

“Nationally, women’s wear has been particularly weak,” said Walter Loeb, a New York-based retail analyst. “There has been no fashion breakthroughs and no excitement.”

This winter’s warmer weather was partly to blame nationwide, lessening demand for sweaters and other heavy clothing. Apparel sales have been a bit stronger in Southern California--where weather is less of a factor in sales--and local retailers should have less clothing in clearance inventories, Deloitte & Touche’s Giss said.

He added that sellers of consumer electronics--items such as cellular telephones and fax machines--were among the Southland merchants with the strongest holiday sales season.

Nationally, jewelry--with a 10.1% increase--had the biggest sales gain of the season from Thanksgiving weekend through Christmas Eve, according to a report released Monday by the International Council of Shopping Centers, a trade group representing most of the nation’s malls. Of the seven categories surveyed, apparel had the season’s smallest increase--only 1.4%, the council said.

Overall, the council’s survey showed a 3.2% increase in sales for the season nationally. However, that tally only includes shopping centers and does not cover department stores or major discount chains such as Wal-Mart.

Other surveys show that consumers were increasingly value-conscious and dependent on credit. TeleCheck, a check acceptance service, reported that the dollar amount of purchases made with checks rose only 2.2% percent for Nov. 25 through Dec. 21 over the same period last year. However, MasterCard said sales authorizations from Thanksgiving weekend through Christmas Eve climbed to $17.38 billion, a 35.2% jump from last year.

MasterCard’s Smart Money Watch, a survey that also includes transactions involving the American Express, Visa and Discover cards, reported that discount stores registered the largest increases in credit card sales this holiday season--up 63%. That huge gain was due in part to one additional sales day this season.

Times staff writers Chris Kraul in San Diego, Vivien Chen in Los Angeles and Susan Marquez Owen in Orange County contributed to this report.

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