Holiday shoppers favor department stores

Wal-Mart Stores Inc., the big-box retailer whose deep discounting has traditionally been a big draw for price-conscious holiday shoppers, also is struggling to find its foothold this year.

Bentonville, Ark.-based Wal-Mart said same-store sales fell 0.1 percent in November, and the company estimated that December same-store sales will be between zero and 1 percent. Rival Target Corp. said November same-store sales rose 5.9 percent.

Wal-Mart has conceded that it has had some troubles with its apparel and home businesses, although it has said it hopes to see some improvements in those areas by spring.

C. Britt Beemer, chairman and founder of America’s Research Group, said his research shows that Wal-Mart remains a very popular destination for holiday shoppers. The problem may be that Wal-Mart isn’t making much money off those shoppers.

“You may walk into a store and buy four toys and spend $48, but it’s not like someone walking into Target and buying two outfits and spending $90,” he said.

Another concern could be that Wal-Mart lowered prices in an effort to get shoppers to buy more items but is instead finding that shoppers are simply buying the same number of items for less money, Beemer said.

Wal-Mart spokeswoman Linda Brown Blakley said being able to provide the best price is key to the company’s strategy, and “we’re working hard to provide that this shopping season.”

As the housing market has slowed, Niemira said stores that sell products for the home, including furniture, also are having a tough time this holiday season.

However, shoppers do appear to be snapping up electronics such as large, flat-panel televisions, digital cameras and global positioning systems. Blakley said televisions and cameras, in particular, have proved popular at Wal-Mart.

But this year, people aren’t just buying those items at electronics stores and discounters, said Stephen Baker, vice president of industry analysis for The NPD Group. He’s also seen flat-panel televisions and other gadgets on sale at such unlikely retailers as office supply stores and home improvement chain Home Depot.

Baker said Apple Computer Inc.’s iPods also remain a popular gift, although the growth in portable music player sales isn’t expected to be as massive as in years past.

Sandi Reikow of Gig Harbor, Wash., shopping recently in Seattle, said three of her four grandchildren will get iPods this year. The other one is getting a portable DVD player. Her shopping companion, Flora Boss, was planning to buy computers for her two older kids, and all three children also were getting jackets.

An increasing number of people have given up trying to guess what their family and friends will want and are instead turning to gift cards. Beemer estimates that about half of all shoppers had purchased some sort of gift card by Dec. 10, and many more are expected to jump on the bandwagon by Dec. 25.

Carol Stewart, of Vashon Island, Wash., said she plans to buy gift cards, mainly for local shopping centers, for most of the people on her gift list.

She reasoned that gift cards are sure to please, while it can be much harder to try to pick just the right gift for nieces, nephews and godchildren whose tastes are constantly changing.

“When you live apart, you have no idea what they want,” Stewart said.

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