Retail Industry Alert | Holiday Retail Wrap-Up: 2010 Sales Remain Lackluster but Prospects for 2011 are Cautiously Optimistic

When a holiday shopping season kicks off nearly a month earlier than usual, it certainly is difficult for retail sales to maintain momentum over the course of the season. This past holiday, a number of retailers went to the extreme and advertised "Black Friday" values well before Thanksgiving weekend —a reaction to two prior years of slow holiday sales.

The initial result was good, as shoppers responded positively. Most stores reported strong November results enhanced by promotional activity not usually seen in the pre-holiday sales period.

This early promotion also altered the traditional retail cycle. In reality, retailers need a cold October and November to entice consumers into their stores to buy cold-weather gear, presumably at regular price or at a small discount. These early season sales enhance margins and help allow the retailers to take significant markdowns in December to drive the holiday shopping frenzy.

However, this year's early promotions fulfilled many shoppers' needs and by the end of Thanksgiving weekend, many had completed their holiday shopping and enjoyed numerous bargains in the process. With stores enhancing inventories to reflect this year's positive trend, the fall-off in traffic may result in unplanned markdowns for the period.

Additionally, the 2010 calendar also hindered the season, as it was not particularly conducive to driving sales. Christmas on a Saturday is a problem. The last Saturday before Christmas is the biggest sales day of the year. However, with six days following prior to Christmas, a sense of urgency didn't exist this year. What's more, the weekend holiday prompted many people to travel early in the week, impacting sales on Thursday and Friday, Christmas Eve.

The post-holiday sales period also faced challenges. The day after Christmas has become a major shopping day combining drastic discounts with customer returns and exchanges. But the current retail culture of significant discounts before Christmas diminished the lure of post-holiday clearance bargains and lowered returns as customers rationalize that bargain merchandise is a bargain despite the color or the size of the product. In addition, a major East Coast snowstorm the day after Christmas certainly didn't help matters, but snow after Christmas is a lot better than before the holiday.

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— Peter N. Schaeffer


	Peter N. Schaeffer Partner Carl Marks Advisory Group LLC

	212-909-8453 \| phone pschaeffer@carlmarks.com View Bio »


	Retail: A Look Back at Christmas 2010 January 19, 7:30 - 9:30 a.m. See details below

Carl Marks Retail Expert Peter Schaeffer Looks Back at Holiday Sales During TMA Panel Discussion

The retail industry has continued to struggle throughout the latest recession — even during the traditionally busy holiday shopping season. Although Black Friday sales were strong, the following holiday shopping weeks didn't deliver the same hefty sales figures.

Overall, how did Christmas 2010 fair in comparison to previous years? Carl Marks partner and retail expert Peter Schaeffer will serve among a panel of industry professionals to review holiday sales results during the Turnaround Management Association's Long Island Chapter event, Retail: A Look Back at Christmas 2010, January 19, 7:30-9:30 a.m., at the Viana Hotel and Spa in Westbury.

THE PANEL INCLUDES:
Moderator
Jeffrey Wurst, Senior Partner — Ruskin Moscou Faltischeck P.C.

Panelists
Peter Schaeffer, Partner — Carl Marks Advisory Group LLC
Scott Bernstein, President — SB Capital Group LLC
Stewart Cohen, Principal Managing Director — Gordon Brothers Group
James Dore, President — Wells Fargo Retail Finance

For details or to register, visit www.longisland.turnaround.org.