Transcripts

Will Procrastinators Pay Off For Retailers

SUSIE GHARIB: The holiday shopping frenzy is on. Tomorrow is expected to be the busiest day of the season for retailers. After a disappointing start to the month, retailers hope procrastinators will save the season. As Erika Miller reports, the nation's retailers are pulling out all the stops to make sure this Christmas season is a very green one.

ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: It is make or break time for the nation's retailers and many are going all out to lure shoppers this weekend. Many stores are ratcheting up the discounts, opening early and closing late. A few are even open around the clock through Christmas Eve. Retail analyst Harry Ikenson of Soleil Securities says it will be a nail-biting finish.

HARRY IKENSON, RETAIL ANALYST, SOLEIL SECURITIES: Christmas falls on a Monday. When you have Christmas fall on a Monday, it's like a procrastinator's dream. They have like, I have a whole, full weekend and that's what they're doing. They're waiting.

MILLER: Most industry experts are cautiously optimistic. The National Retail Federation predicts sales during November and December will rise 5 percent. That would be slower than last year's 6.1 percent increase. But already there are clear winners and losers when it comes to sales figures. Retail analyst Jharonne Martis of Thomson Financial says electronics stores are expected to be top on Santa's list. JHARONNE MARTIS, SR. RESEARCH ANALYST, THOMSON FINANCIAL: We're seeing that electronics continue to be the big winners. TVs, plasma TVs, MP3, digital cameras and, of course, the video consoles like Nintendo wii and Sony Playstation that were sold out right away.

MILLER: Luxury stores like Nordstrom are also expected to do very well because they cater to wealthier customers who are typically less affected by gasoline prices. Online retailers are expected to have their best year yet. Research firm Comscore estimates online holiday spending will rise 25 percent over last year. On the flip side, analysts predict industry giant Wal-Mart will be the big loser.

MARTIS: We believe that the problem with Wal-Mart are more company- specific. It's not really a macroeconomic problem. And maybe it's time for Wal-Mart to start restructuring their business strategies.

MILLER: Gap is also expected to fare poorly, mainly because of fashion misses at its namesake stores. Analysts say it may be well into the New Year before they can get an accurate read of holiday spending. Gift cards now account for roughly 20 percent of holiday purchases and those sales don't count until the cards are actually used. Holiday spending doesn't end at Christmas. Last year, the week after Christmas accounted for more than 15 percent of holiday sales as consumers used gift cards and took advantage of even deeper discounts. Erika Miller, NIGHTLY BUSINESS REPORT, New York.