For U.S. stores it is ugly out there: in more ways than one BY DHANYA SKARIACHAN, LISA BAERTLEIN AND PHIL WAHBA (Reuters) - The 2013 holiday shopping season may end up being remembered for its ugly sweaters and, for many retailers, even uglier discounts. With growing online competition, weak consumer confidence and no fashion must-haves, most U.S. retailers will have to offer both big discounts and stellar service to get consumers to spend freely, according to analysts who joined Reuters reporters on visits to stores in New York, New Jersey, California and Illinois ahead of the holiday season. People are being a lot more selective in where they spend their money, said Wedbush analyst Gabriella Santaniello while touring the Westfield Topanga mall in Canoga Park, California. To be sure, with online sales increasing, store visits provide only part of the picture. Still, a trip to the mall with a trained expert provides vital clues ahead of the holiday season, which usually accounts for almost half of retailers profits. The battle for the consumer dollar is particularly intense in a year when taxes have risen, unemployment has remained stubbornly high, and confidence has taken a hit from the recent government shutdown and uncertainty over the introduction of President Barack Obamas healthcare reforms. Offsetting those negatives has been the wealth impact of a rise in home prices and a rallying stock market, although that is more likely to help the luxury end of retailing. Most industry forecasts show sales growing modestly overall, with online retailers taking a bigger slice of the pie and electronics stealing share from apparel. ComScore, an analytics firm, this week said it expected e-commerce sales, including those made on mobile devices, to rise 16 percent this holiday season.
Posted on: Thu, 28 Nov 2013 00:29:00 +0000
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