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Retailers’ Discounts Revive Holiday Shopping

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From Bloomberg News

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.

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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.

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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.

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