California Apparel News

At JCPenney, the frost wasn’t even off the Halloween pumpkins when the mid-tier department store pulled out a red pen and slashed by 50 percent the price on many of the store’s colorful Christmas decorations.

On Nov. 7, right after the elections were no longer diverting consumers’ attention from shopping, Kohl’s stretched its shopping hours to 11 p.m. and midnight on Fridays and Saturdays. The family department-store chain also gave bargain hunters “power hours” to get the most out of discounts on everything from diamond earrings (marked down from $250 to $77.99) to Chaps sweaters (reduced from $79.50 to $39.75).

And Nordstrom, the upper-echelon store that caters to the carriage crowd, is giving double reward points for all credit-card purchases made until the end of the year. Those reward points get you a gift certificate based on how much you spend.

With a stalled economy, retailers are running scared this holiday season and ramping up bargains earlier than ever to make sure consumers open up their pocketbooks to buy gifts for their friends, relatives and themselves.

“This is the worst retail holiday season in 30 years,” said Britt Beemer, founder and chairman of America’s Research Group, which surveys consumers about their buying habits and makes predictions about their shopping behavior.

Marshal Cohen, a respected retail analyst with The NPD Group, first spotted store Christmas decorations as early as Aug. 14 this year. “That is a month earlier than last year,” he observed. “Christmas isn’t coming any earlier.”

Retailers and mall operators are rolling out the red carpet this season to make shoppers comfortable and ensure their buying trips are hassle-free.

Some are offering free valet parking, free gift wrapping and greeters at the doors. Others are setting up rest stations with free coffee and TV sets.

Just to make sure that shoppers can prowl the aisles any time they want, many malls and stores are opening their doors at midnight on Thanksgiving. Macy’s is contemplating keeping a few stores open 24 hours during the holiday season.

Many industry watchers said this year’s spectacular super sales haven’t seen their equal since the recession of the early 1990s.

“We expect pretty aggressive sales across the board,” said Erin Hershkowitz, a spokesperson for the International Council of Shopping Centers in New York.

The shopping-mall organization is predicting that holiday sales will see their weakest performance since 2002, with only a 1.7 percent uptick in sales volume over last year. “We are expecting discounters and wholesalers will have a decent holiday season,” Hershkowitz said. “Apparel will be contingent on if we have a cold November and December.”Playing it safe

However, store owners aren’t taking a chance on whether a blast of snow nudges sales. Walk into any major chain emporium and practically half the store’s merchandise is on sale.

That’s because in the third quarter, the gross domestic product contracted at a 0.3 percent annual pace. Spending on non-durable goods such as food and clothing was down 6.4 percent, which was the biggest drop since 1950.

“Nobody wants to be caught with merchandise this year,” said Richard Giss, a retail analyst in Los Angeles with Deloitte & Touche. “There is a real fear that people won’t show.”

That fear wasn’t lost on JCPenney, whose department-store floors are awash in red discount signs. A large chunk of the company’s merchandise is discounted 40 percent to 50 percent. On a recent visit, boot-cut jeans that had been selling for $40 are now $21.99. Wool coats once priced at $200 are now $100. Men’s silk shirts are marked down 60 percent.

But JCPenney spokesperson Quinton Crenshaw said the retailer is right in step with its usual promotional campaign. “We are definitely a promotional department store, and that is something our customers understand,” he said. “We have focused on making sure our pricing is really sharp.”

Macy’s has been so aggressive on the discount front that it even slashed prices for Election Day on Nov. 4. Dresses and women’s sportswear of several brands were 50 percent off. Women’s suits once selling for $200 to $360 saw prices cut to $69.99. Men’s suits normally selling for $475 were discounted to $179.99.

Shoppers can expect more of those sales at the large Cincinnati-based chain, which operates more than 800 department stores in 45 states. “We’re following the same basic strategies that we have over recent years that have led us to outperform in a difficult market,” Macy’s spokesperson Jim Sluzewshy;ski said. “We’ll have an exclusive assortment like Tommy Hilfiger and FAO Schwartz and great sales during the holidays.”

Last year, select Macy’s stores kept their lights on 24 hours a day during the peak shopping season. The company is contemplating the same strategy this year, Sluzewshy;ski said.

But that didn’t help last year. In December 2007, Macy’s same-store sales declined 7.4 percent over the same period in 2006.

Macy’s wasn’t alone. JCPenney’s December 2007 sales dipped 4.5 percent over December 2006, and Kohl’s was down 3.4 percent, while Wal-Mart Stores saw an 8.4 percent jump.Mall crawl

Shopping malls are also in on the sales strategy. They are conjuring up ways to make shopping a fun experience that eliminates some of the agitation and aggravation associated with holiday crowds.

Simon Property Group, the Indianapolis company that owns more than 300 malls in 41 states, said it will be promoting the idea that shopping malls are a place to find bargains and fun. With that in mind, more musical events are planned, such as local chorale groups singing holiday tunes. “At all our properties we will have a rejuvenation station where you can have a cup of free coffee. Many stations will have TV sets,” said Simon spokesperson Les Morris.

Several of Simon’s shopping centers—which include the Brea Mall, the Shops at Mission Viejo and the Westminster Mall, all in Southern California—will have free valet parking or shuttle buses from satellite parking lots.

On Black Friday, the day after Thanksgiving and the first big shopping day of the season, all Simon malls will open at 5 a.m., and the company’s premium outlet malls, such as Desert Hills Premium Outlets in Cabazon, Calif., will open at midnight on Thanksgiving.

The Glendale Galleria is also extending its holiday hours. On Thanksgiving, several of the malls stores—such as The Disney Store, Aeacute;ropostale, American Eagle Outfitters and Anchor Blue—will open at midnight. Victoria’s Secret, Mervyn’s, JCPenney and the Gap will roll out their shopping welcome mat at 4 a.m., while the rest of the mall stores begin the day at 5 a.m., said Glendale Galleria spokesperson Melissa Pollack.

Yet Deloitte & Touche’s Giss said he is doubtful that a flurry of extended hours will help the bottom line. Longer hours involve paying store clerks more money, cutting into profit margins.

“I’m a little skeptical that it will be an attractive measure,” he said. “I don’t sense that people are desperate to get into the stores.”