Financial crisis moves from Wall St. to the mall

Tag : furniture stores

Some analysts were already expecting the weakest sales growth forthe holiday season in 24 years, and with uncertainty roiling thebanking system and a teetering economy, they figure Americans willmake their lists and check them three or four times.
"I haven't seen this kind of fright since 9/11," said Faith HopeConsolo, chairman of real estate firm Prudential Douglas Elliman'sretail leasing sales division. She said stores are "all armingthemselves for what is probably the most difficult season acrossthe board."
At malls, shopping districts and on the Web, the discounts aregrowing desperate. "Up to 60 percent off," say signs at AnnTaylorLOFT stores, "50 percent off" at Old Navy. Restoration HardwareInc. e-mailed $100 gift vouchers out to customers Thursday forpurchases of $400 or more.
Holiday items are starting to flow into stores _ and they'reexpected to be marked down immediately, said Marshal Cohen, chiefindustry analyst for NPD Group Inc.
Wal-Mart Stores Inc., the world's largest retailer, is opening itsChristmas shops a week earlier than last year to lure shoppers.Wal-Mart is also cutting prices on 10 popular toys to $10 each.Holiday catalogs are already arriving in the mail.
But it may take more than sale signs and promotions to spurshoppers, who have been dealing for months with high gas and foodprices, weaker job and housing markets and tighter credit.
Many economists predict spending could deteriorate as the problemson Wall Street cascade through the economy, with layoffs expectedto rise and frozen credit markets meaning shoppers are having aharder time getting loans and credit lines. Eight in 10 fear thefinancial crisis will affect them directly, according to anAssociated Press-GfK poll.
Noelle Snow, 41, of Deerfield, Ill., said the economic turmoil hasmade her cut her holiday budget for her two children to $200 from$500.
"I'm just trying to sock away what I can between budgeting for acouple of things that have broken in my house," said Snow, whoworries about her job in financial services and her stock funds."I'd rather put that money toward a couple of things."
Amanda Plummer, owner of Precious Plum, a high-end clothing storein Summit, N.J., a bedroom community for financial executives, saidbusiness has slowed in September.
"I am definitely nervous. People are doing a lot more windowshopping. Instead of buying four or five items, they are buying oneor two," said Plummer.