Retailers prepare for their 'Super Bowl'

For retailers across the Springfield area, the pressure to perform is on.

As Black Friday approaches, the month of November is crunch time. With this year’s shopping season shortened by a late Thanksgiving holiday, many business owners and managers are counting on gift givers to beat expectations as they fight their way into the black.

According to the National Retail Federation, the holiday spending picture is somewhat up in the air. Individual shoppers are planning to spend 2 percent less on holiday purchases this year, but U.S. housing market growth and demand for large-ticket items has the NRF forecasting a 3.9 percent increase in holiday spending. The projected $600 billion in sales nationwide would eclipse 2012 holiday receipts by 3.5 percent.

Recognizing federal debt ceiling concerns, the NRF reports 51 percent of shoppers said the economy would impact their spending decisions this year.Regardless, the activity matters to local retailers. According to the NRF, November and December sales can represent 20 to 40 percent of a retailer’s annual tally.

“It’s the Super Bowl for us,” said Joe Cordell, store manager of the RadioShack at 3303 S. Campbell Ave. in the South Oaks Centre.

Each holiday season, shelves are stocked with gadgets such as remote control helicopters, and this year Cordell is pushing the company’s Tech the Halls promotion for children and adults who like to tinker. Floor space is being consolidated to make room for displays.

“By Black Friday, you’ll hardly be able to move in here,” Cordell said, declining to disclose sales expectations.

RadioShack Corp. (NYSE: RSH) is opening stores an hour earlier than normal on Nov. 29, but he said the retailer’s real niche is its ability to show off its products.

Managers and associates have participated in meet-and-greet training sessions this month with representatives from Samsung and other vendors. “It gives them a chance to demonstrate their products,” he said. “It is not someone else’s interpretation of how a product should be shown to the customer.”  

According to the NRF, seasonal hiring is expected to trend up to nearly 780,000 workers from the 720,500 employed in 2012, when seasonal jobs were up 13 percent from 2011.

“We’ve been gearing up for the holidays for a couple of weeks,” said Susan Dial, Kmart assistant manager at 3101 S. Glenstone Ave., noting an emphasis on cashier and layaway staffing.

Erica Jones, senior manager of communications with Wal-Mart Stores Inc. (NYSE: WMT), said the company is hiring some 55,000 seasonal workers in 2013. She said plans for this Thanksgiving and Black Friday have been in the works for a year.

“We start preparing as soon as the last one ends,” Jones said. “It is the time of year we look most forward to.”

Though third-quarter profit rose to $3.73 billion – slightly beating analyst projections – comparable U.S. store sales fell 0.3 percent, prompting a soft holiday season guidance by the megaretailer. Wal-Mart reduced its fourth-quarter and year-end forecasts, namely earnings of $1.60 to $1.70 in the holiday quarter, against Wall Street’s expectations of $1.69 per share.

With six fewer days to shop this year between Thanksgiving and Christmas, Jones said the pressure is on to pull out all stops for customers. A big goal at Wal-Mart this year is to have more guaranteed items at set prices for shoppers who come at designated times.

“Last year, we debuted the one-hour guarantee with three items,” Jones said, noting the program this season will cover 21 items with guaranteed pricing 6–7 p.m. and 8–9 p.m. on Thanksgiving.

Kmart and RadioShack are entering the season with disappointing sales figures in hand. According to a financial update released by parent company Sears Holdings Corp. (Nasdaq: SHLD), Kmart’s comparable store sales were down 2.6 percent for the 12-week period ending Oct. 26. While Kmart’s third-quarter earnings are scheduled for release Nov. 21, Sears Holdings reported it is preparing for a companywide net loss of between $532 million and $582 million.

RadioShack’s third quarter resulted in a $112.4 million loss, which compares to a loss of $47.1 million in the same quarter last year.

Among new moves this year to spur shoppers, Kmart is opening at 6 a.m. on Thanksgiving and remaining open through 11 p.m. on Black Friday. Also, Dial said Kmart’s East Kearney Street store was one of 500 selected to offer signature clothing and accessories from pop artists Adam Levine and Nicki Minaj.  

Small-business owners are less optimistic about this holiday season than they were last year, according to a recent American Express survey that conducted 501 interviews with companies that employed 100 or fewer workers. Thirty percent of retailers said they expect their sales to be strong this year, down from 41 percent in 2012.

Fewer small-business owners, 27 percent, plan to give their staff’s end-of-year-bonuses in 2013, a dip from 35 percent last year. A show of appreciation for clients also could take a hit as only 41 percent of small businesses plan to give gifts to clients this season, down from 51 percent in 2012.

According to an Oct. 1–8 NRF consumer spending survey, several trends are emerging this year. Online shopping continues to grow in popularity as 52 percent of Americans are planning to buy gifts online, and many retailers are offering special Cyber Monday deals Dec. 2.

Consistent with results during the last decade, shoppers are getting busy earlier each season. This year, 41 percent of Americans said they planned to buy at least some holiday gifts before Halloween, and 12 percent said they started before September.

“Every year, it seems to get earlier,” Dial said.