U.S. Retailers Use More Creative Techniques In Attracting Holiday Bargainer Hunters

November 3, 2008 9:13 a.m. EST

Houston, TX (AHN) - Notwithstanding a general retail sales bleak outlook for the fourth quarter of 2008, a number of U.S. retailers are turning to creative ways to get the budget-conscious American shopper spend some money for the forthcoming Thanksgiving and Christmas holidays.

According to Britt Beemer, chief executive officer of America's Research Group, among the measures taken by some retailers to avert a financial disaster are to cut margins, reduce prices, start holiday sales ahead of the regular schedule, offer low or zero-interest rates on items paid on installment, early mailing of holiday catalogs and launch of new rewards programs.

"If you can offer consumers these choices, you're going to be a big winner," the Houston Chronicle quoted Beemer.

He added based on a survey, 61 percent of 1,000 adults anticipate the coming Black Friday sale, or the day-after-Thanksgiving shopping holiday. The number has gone up from 48 percent, said Beemer, who added, "A lot of people are going to grab that Thursday morning paper and map out where they'll be going at 4, 5, 6 o'clock in the morning."

Even at a time when consumer spending has gone down, some retailers of costlier gifts are still positive of making good sales for the holidays. Conn's, an electronic and home furnishing store, hopes to do it by offering a $100 discount on its plasma TVs. Group 1 Automotive will grant a discount for luxury car models and zero-interest loans for qualified buyers of Nissan and Toyota vehicles.

However, one damper to higher holiday sales is the cut on credit limits by banks. Because of this Home Depot and Sears Holdings expect an 8 percent reduction in their holiday sales this year. Beemer estimates two-thirds of holiday sales are done using credit cards.