The unusually warm December weather appears to have lulled some holiday shoppers into a false sense of security. After all, if it’s 50 degrees outside, Christmas must still be far away, right?
Maybe that’s why a quarter of consumers surveyed last weekend said they had not yet started their holiday shopping. Another 11 percent said they had just gotten started, and twice that many said they were no more than halfway done.
A lucky 16 percent reported they were finished.
“Shoppers have delayed their purchases as they do each year, and we will see the pace of shopping pick up rapidly as we move deeper into December,” predicts Robert Verdisco, president of the International Mass Retail Association, which commissioned the survey.
If procrastinators are preparing for another mad dash to the finish line, that could be good news for the nation’s retailers, which mostly are holding their own–so far.
Another hopeful sign for them: Almost 20 percent of shoppers surveyed said they already had spent more than anticipated.
Verdisco calls that “good news for our beleaguered economy.”
Even if it’s bad news for our checking accounts.
Beating the odds: Not all retailers are suffering during the 2001 recession, which officially began in March and dramatically worsened after Sept. 11.
Burberry, the reinvigorated British apparel retailer, recently announced an almost 60 percent increase in first-half operating profits, driven by a surge in sales of its upscale plaid products.
Home accessories retailer Pier 1 Imports racked up double-digit sales gains last month, as did the Great Indoors, the home remodeling chain being rolled out by Sears, Roebuck and Co. Discount retailers like Wal-Mart Stores Inc. and Target Corp. continue to prosper.
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But there’s a less well-known retail name that is profiting as well: Michaels Stores, the arts and crafts chain that sells everything from needlepoint projects to candle-making kits.
“Our sales are strong. There’s a lot of activity in the stores,” says Michael Rouleau, chief executive of Dallas-based Michaels. “Our seasonal sell-through is probably the best ever.”
In plain English, that means the red felt squares, packages of glitter and artificial Christmas trees that Michaels highlights this time of year are flying out the door.
Indeed, Michaels is on track to meet its goal of a 4 percent to 6 percent same-store sales increase for the fourth quarter.
Rouleau doesn’t give all the credit to the “cocooning” trend that consultants have been talking about.
Michaels, a chain of 702 stores with 22 in the Chicago area, has spent the last three years getting its act together, standardizing store design and merchandise and upgrading its antiquated technology. Annual sales per store have risen to $3.9 million from $2.9 million, helped in part by troubles at a number of competitors.
But there’s no question that Michaels is benefiting from the renewed emphasis on home and family. Some of Michaels’ most popular items include do-it-yourself table decorations and “memory books,” which are scrapbooks that incorporate photos and other sorts of keepsakes.
Michaels’ upbeat performance stands out in a largely bleary retail sector.
Shares have soared this year, and all 10 analysts covering the stock, which recently moved to the New York Stock Exchange, raised their earnings estimates for fiscal year 2002 in the days after strong third-quarter earnings were announced in late November, according to Thomson Financial/First Call.
On hold: Most retailers try desperately to get new stores open before Christmas. The new Bottega Veneta store at 800 N. Michigan Ave., however, will be missing its second holiday season in a row.
The delay in the store’s debut, which has been pushed back until spring 2002, is a byproduct of the Gucci Group’s acquisition of Bottega Veneta in February; Gucci bigwigs didn’t like the design of the new store, we hear.
And there’s been plenty of other upheaval as well: Bottega founders Vittorio and Laura Moltedo departed soon after the deal was closed, and Gucci wasted no time in dumping Bottega’s new apparel line.
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