And Now that Christmas is Out of the Way...

from WDIV Detroit TV 4

The nation's retailers ushered in the post-Christmas shopping season on Tuesday by slashing prices even more on holiday items and stocking up on fresh merchandise. With the 2006 pre-Christmas season falling short of sales expectations for many merchants, the retail industry hoped that shoppers, armed with gift cards, would spend freely in the weeks ahead on discounted items as well as full-priced merchandise. That would boost business in December and in the fourth-quarter.

Macy's opened its doors at 7 a.m. and offered discounts ranging from 50 percent to 75 percent. Toys "R" Us Inc. offered 50 percent discounts on selected toys. The toy seller was also showcasing hot toys from 2007 in its stores.

After a stronger-than-expected turnout on Black Friday, the day after Thanksgiving, stores struggled through the first two weeks of December as consumers returned to malls and stores at a disappointing paced. Stores did get a late-buying sales surge in the final days of the pre-Christmas season, but it was not enough to meet holiday sales goals. A big negative factor this season was mild temperatures throughout most of the country, which depressed sales of winter items like coats and snow boots.

The post-Christmas season has become more important with the increasing popularity of gift cards. Gift card sales are only recorded on retailers' balance sheet when cards are redeemed.