Holiday shoppers are still taking their time

updated 11:41 a.m. ET Dec. 11, 2007

NEW YORK - With little more than two weeks left until Christmas, U.S. retailers who have seen sales drop off since the holiday shopping season's strong start are feeling the pressure of the final stretch, with many merchants offering deep discounts in order to lure last-minute shoppers.

Consumers — including those who were finishing their holiday shopping and others who just started — were armed with their wish lists but also scouring for bargains.

"I'm just about done. I just have two more stocking stuffers to take care of," said Julie Nies, of Cincinnati, who was at the local Eastgate Mall on Friday afternoon.

But Matt Schneider, who was at the same mall, was just getting started. He said he would probably finish "about Christmas."

Nervous retailers have already started cutting prices. Wal-Mart Stores Inc. launched its third round of in-store secret specials in addition to what was advertised in its circulars, including $398 Gateway laptop computers. And Toys "R" Us threw open its doors at 7 a.m. Saturday, an hour earlier than a year ago, to offer special deals on toys until noon. Macy's Inc. was offering savings up to 50 percent on items from clothing to jewelry.

Based on early reports, the past weekend was an improvement from a week earlier, but stores expect many shoppers to wait until the final few days before Dec. 25, especially since Christmas falls on a Tuesday.

"This weekend was better than last weekend, but not good enough," said Marshal Cohen, chief analyst at market research company NPD Group Inc. "We are going to see more aggressive promotions."

After a strong Thanksgiving holiday weekend, the official start of the holiday shopping season, business has slowed even more than normal, resulting in mixed November results for retailers. Now, stores are stepping up discounts and other come-ons to get shoppers to buy.

Shoppers were looking for big discounts.

"There were lots of good sales — 50 percent, 60 percent and sometimes even 70 percent," said Alice Lola of South San Francisco, who was spotted lugging an artificial Christmas tree to her car at Tanforan shopping center in San Bruno, California.

Steve Birk of Elkhart, Indiana, who was shopping in Chicago, said he purchased some hats and shirts at an Eddie Bauer store that were 50 percent off.

"You always find discounts in some places, like Kohl's," he said. "But I have seen more bargains than usual."

Most of the discounts were planned, though Cohen said he thinks some retailers, particularly apparel merchants, are starting to bow to pressure by adding some extra price reductions. The problem, he said, is that "the consumer is not enthralled with shopping."

"The excitement is off," he said. "This is probably one of the most ho hum Christmases I have seen in five years."

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