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Walmart To Kick Off Holiday Shopping Season Day After Halloween

WALMART CHRISTMAS

NEW YORK (AP) — Wal-Mart is doing whatever it takes to rope in holiday shoppers however they want to buy.

For the first time, Wal-Mart Stores Inc. is offering free shipping on what it considers the season’s top 100 hottest gifts, from board games to items related to Disney’s hit film “Frozen” items, starting Saturday. The move comes as rival Target Corp. began offering free shipping on all items, a program that started late October and will last through Dec. 20.

Wal-Mart is also planning to offer discounts, or what it refers to as “rollbacks,” on more than 20,000 items on a broad range of products, from groceries to TVs, starting Saturday. The timing is similar to last year, but the discounter said the assortment is broader. It’s also pulling forward by nearly a month 15 24-hour online deals originally reserved for the Thanksgiving weekend and so-called Cyber Monday, about double from last year. For the first time, Wal-Mart will allow shoppers to pick up those 24-hour online specials at the store. They include 40-inch Element TVs for $199, down from $298, and Crayola Paint Makers for $12, down from $18.88. Customers will be able to purchase the deals online starting shortly after midnight on Monday.

The online deals are in addition to several hundred online holiday specials that start Saturday.

“We’re trying to offer the best deals when they want them,” said Steve Bratspies, Wal-Mart’s executive vice president and general merchandise manager for Wal-Mart’s U.S. division.

Wal-Mart unveiled some of the details of its holiday strategy as it considers matching online prices from competitors such as Amazon.com, a move that could help grab more customers but could also hurt profit margins. The Bentonville, Arkansas-based discounter has matched prices of local store competitors but has not followed other retailers including Best Buy and Target in matching prices of online rivals. But last month, Wal-Mart started to test the strategy in five markets: Atlanta; Charlotte, North Carolina; Dallas; Phoenix; and northwest Arkansas.

Wal-Mart is trying to rev up sluggish sales in the U.S. as it battles competition from online retailers, dollar stores and drugstores. At the same time, it’s also dealing with a slowly recovering economy that hasn’t benefited its low-income shoppers. As a result, Wal-Mart’s U.S. namesake stores, which account for 60 percent of its total business, haven’t reported growth in a key sales measure in six straight quarters.

Wal-Mart’s move underscores how stores are being forced to step up their game for the holiday shopping season, which accounts for about 20 percent of retail industry’s annual sales. The National Retail Federation, the nation’s largest retail trade group, forecasts a 4.1 percent sales increase to $616.9 billion for November and December from last year. But online sales, which are included in the forecast, are expected to increase anywhere from 8 percent to 11 percent.

Wal-Mart declined to say whether it was considering changing its price match policy for just the holidays or permanently. Deisha Barnett, a Wal-Mart spokeswoman, says many store managers have matched online prices for customers on a case-by-case basis.

“Taking care of the customers who shop our stores is what we always aim to do,” she added.

As for its free shipping holiday program, Wal-Mart said that it had store executives pick the 100 items and that products are guaranteed to arrive before Christmas. Wal-Mart’s current policy is that online shoppers have to spend at least $50.

Sourced from huffingtonpost.com

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Expect Retailers to Open Even Earlier This Thanksgiving

While retailers aren’t expected to announce any special Thanksgiving hours until the second half of October or into November, “it’s inevitable to see them open all day or even earlier than last year,” Joel Bines, managing director and co-leader of consulting firm AlixPartners’ retail practice, said in an interview.

Retailers are struggling to boost sales, and the bottom line. Most consumers in the middle see little, if any, wage growth. The back-to-school selling season is shaping up to be the worst since 2009, said Craig Johnson, the president of consulting firm Customer Growth Partners. Major retailers, including Wal-Mart Stores Inc.WMT -1.25%, have cut their annual outlooks.

Indeed, AlixPartners forecasts holiday sales this year to rise between 3.2% and 3.8%, “well below” the 10-year average, excluding a decline in 2008, of a 5.1% gain.

“The No. 1 topic of discussion [for retailers] is what to do to drive sales,” Mr. Bines said. “You’ll see retailers come up with all sorts of tactics. It’s going to be an extremely challenging holiday.”

Expect holiday promotions to start earlier than usual: 53% of retailers plan to begin holiday promotions either in September or October, versus 35% last year, according to a survey by consulting firm Hay Group of retailers with combined 2013 sales of nearly $183 billion. When asked whether they plan to cut back on discounts this year, 76% said no, up from 61% last year and 50% in 2012.

To be sure, opening early on Thanksgiving may do little more than ruin employees’ turkey feasts.

Last year, retailers from Wal-Mart and Best Buy Co.BBY -2.15% Inc.  to Macy’s Inc.M -1.26%  and J.C. Penney Co.JCP -2.97% Inc.  opened stores or kicked off sales events earlier on Thanksgiving. Still, record Black Friday weekend sales didn’t salvage what turned out to be a disappointing holiday season.

“With the soft sales outlook, we do anticipate a few earlier openings” on Thanksgiving, or even a few more all-day openings, Mr. Johnson of Customer Growth said. “However, there is a law of diminishing returns,” and stores risk cannibalizing their December sales.

But for now, retailers are somewhat hopeful.

Both AlixPartners and Hay Group expect an improvement from last year, which showed the lowest growth since 2009. About one-quarter of retailers expect a sales increase of 5% or more this holiday season over last year, although 70% see flat sales, the Hay Group survey showed. AlixPartners’  forecast for this year, while below average, still tops the 2.3% gain last year. Deloitte’s forecast, released Wednesday, sees holiday sales up 4% to 4.5%.

“People are shopping again, and we see customers coming out stronger this holiday season than last Christmas,” said Craig Rowley, the global leader of Hay Group’s retail practice. “We’re seeing a slow improvement in the economy. They’re feeling more bullish about their prospects. And frankly, people like to shop.”

Sourced from wsj.com

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