Christmas in October
Two weeks ago, this reporter was traveling east on 34th Street in front of Kmart when, lo and behold, there was Santa. Yup, it wasn’t even Halloween yet and there was Old Saint Nick posing with passersby.
Christmas is coming earlier this year at retailers. Will the ploy work? Hard to tell, but here’s proof merchants are promoting earlier than ever:
• Sears is starting with blockbuster pricing on popular items usually associated with the Christmas rush now. A 302-piece Craftsman tool set, normally $400, is $200
• Wal-Mart has slashed prices on hot items, a ploy that has been matched by Target
• Macy’s.com has a beauty box, priced at $75, with free shipping and products from Estée Lauder, Clinique, Prescriptives, Benefit, Lancôme, Clarins, Origins, Shiseido, Strivectin, Frédéric Fekkai, Calvin Klein fragrances, Donna Karan fragrances, Christian Dior, D&G fragrances, Ralph Lauren fragrances, and Armani fragrances
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• Duane Reade will set up Christmas in New York shops with items found only in its stores
• Kmart and Sears are using the age-old strategy of layaway to get shoppers out early, but pay later
Drugstores have an opportunity to benefit from setting up early. With so many consumers hitting stores for flu shots or medications, they might be inspired to start shopping. There was a battle between discounters and drugstore chains over holiday candy sales with discounters talking price advantage over drugstores. Drugstores, however, went all-out with beauty to boost sales. Chains such as Rite Aid and CVS have large arrays of fake eyelashes, hair spray and other beauty items to dress up for Halloween. Again, setting up holiday items next to Halloween could have spurred some early sales.
Still, the outlook isn’t as rosy as retailers would like. A National Retail Federation Black Friday weekend poll estimates that 172 million people hit the stores last year, spending an average of $372.57 per person, or a total of $41 billion. Although retailers are promoting earlier, there could be a scramble for goods as chains pull back on inventory. Many chains have admitted to editing inventories to eliminate a huge carryover into 2010.
Promoting Christmas early has had mixed results in the past. Sometimes it merely annoys shoppers who complain and shop even later. But with little cheery news in the forecast, many chains feel they have little option other than to haul out the holly early.
People, Places and Things
A few words with Roger Bensinger, executive vice president of marketing and business development at Prolitec, a company helping spur fragrance sales. Rather than be spritzed with a scent, Prolitec “softly” scents the air at some retailers.
WWDBeautyNews: How does this work?
Roger Bensinger: We have small units that can scent a specific area, such as near a fragrance display to promote a new Bebe scent. Instead of the whole stores, it is near the display. The same can be done in other areas, such as the smell of bread in a bakery.
WWDBeautyNews: At a time when fragrance sales are down, isn’t it harder to convince marketers to do this?
R.B.: Not really, when companies see the economies of our units. Although there are no hard figures, we do know sampling brings people to the display. Scent is where music was 10 years ago — you’d never go into a store without hearing music today.
What’s in Store
Van Howe Departs: In a major shift at Walgreens, David Van Howe, corporate vice president of new business development, said he would leave the company at the end of the calendar year “to pursue other opportunities.”
Maybelline’s New York Color Sensational Tour: The color tour hit the South Street Seaport last week, a traveling van that helps women find their ideal lip color shade.