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Holidays

Pressure is on for retailers Markdowns have already started as stores cast about to make the most of lean holiday season

By Jenny Strasburg
Chronicle Staff Writer
Sunday September 15, 2002 

Come January, retailers and analysts will applaud the companies that maintained year-to-year sales and profits. On the flip side, Howard Dvorkin, president of the Consolidated Credit Counseling Services Inc., said the economy has prompted 20 to 25 percent more calls daily -- on top of the usual 1,000 or so -- placed to debt- counseling centers run by the nonprofit (www.consolidatedcredit.org). "If you ever want a good indication of an economy, you have to sit in the middle of a call center with credit counselors," Dvorkin said.

Right now, he said, it's loud in there.

Of 850 U.S. consumers polled by Dvorkin's organization recently, 15 percent said they'll spend less money this holiday because they're earning less. And 70 percent said they'll spend less because of accumulated debt.

"Last year, people were spending to make themselves feel better or make others feel better," Dvorkin said. "This year, there may be some conservative holding back. On the other hand, people always spend more than they hoped to." Abundant bargains

Unemployment, weak spending, warm weather and fierce competition in some apparel categories -- combined with a shorter holiday shopping season and other factors -- could mean sweet deals now through year's end.

Where to look: Jewelry -- a weak economy has slowed sales. Denim -- there's fierce competition and an abundance of inventory. Sweaters, turtlenecks, fleece -- racks still packed due to warm weather. Flat-screen TVs -- cheaper-to-make new models are flooding market. Digital cameras -- prices rival those of traditional cameras. Sneakers -- waning demand pushes prices down. Computers -- PC prices at historic lows; rebates are popular. Halloween, Thanksgiving decor -- retailers hope to jump-start holiday buying. Barbecue grills, garden items -- excess inventory left from summer.