Retailers’ Discounts Revive Holiday Shopping

Wal-Mart Stores Inc., Macy’s and other U.S. retailers drew crowds of consumers on the third holiday-shopping weekend of the year, helped by advertised price cuts on clothing, jewelry and other gift items.

Macy’s, a Federated Department Stores Inc. chain, offered 20% off coupons on sweaters and other goods that already have been marked down. Best Buy Co. was mailing $100 gift certificates to customers who purchased certain digital camcorders.

Merchants need to revive customer traffic, which tapered off last weekend after a strong turnout the day after Thanksgiving.

The discounts are designed to woo consumers who might have less to spend this year because of higher fuel prices and interest rates, as well as a recent slump in stocks.

This weekend’s sales levels will help retailers decide whether to cut prices further--which, while attracting customers, would hurt profits--or hold out for an expected surge in business the weekend before Christmas.

Of the 74% of Americans who planned to complete their holiday shopping in December, more than three-quarters said they would wait until the middle or end of the month to finish, according to an American Express Co. survey of 811 adults.

Only 23% expected to finish early in the month.

“I shop right up to the day before Christmas Eve,” said Susan Crane, a housewife from Danville, Calif., who was shopping this weekend in San Francisco.

“There are always last-minute things you need because you forget someone or something.”

Overall, November and December U.S. sales at stores open at least a year are expected to rise about 4% from last year, Bank of Tokyo-Mitsubishi Ltd. predicts.

That would trail the gain of 5.4% achieved in 1999, the best holiday in seven years.