Retailers promote 'staycation' sales
http://www.southcoasttoday.com/apps/pbcs.dll/artic [2008-6-10]
It's the normal time of year for stores to be pushing vacation-timecookouts, camping and games, but with shoppers cautious aboutspending, stores are promoting low-cost activities even more thanusual. Retailers are also seeing more interest in small wayscustomers can make their houses nicer places to spend the season.
Wal-Mart Stores Inc., the nation's largest retailer, has launchedan "American Summer" campaign, featuring tents, grills, coolers,wicker furniture sets and inflatable pools, saying a summer getawayis "as close as your own back yard." Rivals Target Corp., touting"fun under the sun" in its circular, and Kohl's Corp., with a "saleinto summer" promotion were among other retailers cutting prices onswimwear, patio sets and other such merchandise.
With research showing that many households plan to cut back onsummer travel — a Rand McNally survey found two-thirds planto shorten or cancel summer road trips — Wal-Mart is rollingback prices on everything from mosquito repellent to portable DVDplayers to baked beans and barbecue sauce.
"Americans are still wanting to have a great summer," said Wal-Martspokeswoman Melissa O'Brien.
"They want to enjoy those quick weekend getaways and socializationaround the backyard cookout."
Like the retail promotions aimed at drawing people into stores withtheir federal economic stimulus checks, current efforts to spursummer spending will probably have mixed success, said Nick McCoy,a home goods and home improvement consultant for Columbus-based TNSRetail Forward.
"It's true that a lot of people are staying at home rather thantraveling," he said.
"However, because of the incredible pressures in terms of risinggas prices and food prices and job uncertainty, I don't see peoplespending a lot of money on things they wouldn't otherwise. They'restill holding onto their wallets very tightly."
He said discounters might do best with lower-priced merchandise,such as Target's new Whim by Cynthia Rowley collection, whichincludes picnic supplies and backyard games.
"Things to make the yard just more fun, but not big expenditures,"McCoy said.
Schwarz, who stocked up on summer supplies at Wal-Mart, said thatwith five children, her family expects to focus on activities intheir southwest Ohio suburban community. She said they usually makea couple of trips to Lake Cumberland in Kentucky, but will cuttheir car travel this summer to one trip packed with a lot ofsightseeing stops.
"We're definitely condensing trips," she said.
"We're also talking about getting Kings Island passes (a theme parkin neighboring Mason) and making that our vacation."
Mary Kambola, who was checking out grilling meats in a Wal-Mart inWest Chester, isn't optimistic about the summer ahead.
"We'll be going out less," she said. "Everything's going up, thegas and food."
Even staying home to cook will cost more this summer. The price ofan average barbecue, with hamburgers, hot dogs, salad, drinks andsupplies, will cost about 6 percent more than last year.
At a nearby Target, shoppers were snapping up outdoor chairs markeddown nearly 30 percent, and at a neighboring Meijer Inc. storeshoppers could use "Backyard Coupons" to take $100 off patio sets.
Minneapolis-based Target said this week that first-quarter earningsfell 8 percent on weaker-than-expected sales. President and ChiefExecutive Gregg Steinhafel said the company is stressing saleprices, "very mindful that the consumer is very cash-strapped rightnow."
Kohl's, based in Menomonee Falls, Wis., is offering a newcollection by celebrity chef Bobby Flay for grilling andentertaining at home.
Spokeswoman Elizabeth DeLuca said the company knows shoppers arecost-conscious, but she would not discuss its summer strategy.
Wal-Mart store manager Dane Bryan said sales of flowers andlandscaping materials have been brisk, indicating that more peopleplan to use extra time at home to spruce up their yards.
Home improvement retailer Lowe's Cos., which reported a nearly 18percent drop in first-quarter earnings this week, said its storeswere seeing relatively good sales in areas such as painting, lawnand landscaping supplies.
"Even in today's tough economic times, consumers appear willing totake on smaller projects around the home," said Larry Stone, thecompany's president and chief operating officer.
The stay-home trend is even helping sales of air fresheners,scented candles and the like, said Martin Hettich, who is Procter &Gamble Co.'s air care marketing director for North America,including for the Febreze brand.
"What we're finding is that people are cutting down on their tripsto the mall, they're eating out less; by virtue of spending moretime in their home, they actually want to make sure their homessmell nicer," Hettich said.
Ellen Humphrey of West Chester is looking forward to hostingfrequent cookouts for her and her husband's family, including fivegrown children and stepchildren.
"Ultimately, it's probably going to cost us a little more thissummer, because we'll be feeding the family," she said with achuckle. "But we like that."
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