Fearing a slowdown in sales once this season's surging energy bills start to arrive, retailers are aggressively launching promotions to lure holiday shoppers into spending before the Thanksgiving turkey is on the table.
A growing number of merchants are pushing big sales at online shops, where retailers like Macy's for the first time are reducing shipping costs and giving 15 percent discounts for certain Internet purchases. Meanwhile, L.L. Bean began offering free shipping on all items -- no strings attached -- more than two months before Christmas.
''We decided to make a meaningful offer at a time when consumers are likely to be faced with increased expenses for energy and heating," said Rich Donaldson, a spokesman for L.L. Bean. ''It comes at a considerable expense to us, but we are being aggressive and believe that offering it early on will outshine other offers coming from competitors."
Retail analysts say companies are featuring online promotions now as a way to get consumers looking to save on gas to shop earlier and perhaps more often.
Darrell Rigby, head of Bain & Co.'s global retail practice in Boston, says offering free or reduced shipping may be costly, but it's less expensive than retailers giving 50 percent discounts in late December to clear excess merchandise. He predicts that online sales will grow by 30 percent this holiday season to about $20.5 billion in total online sales between November and December.
That's not to say that brick-and-mortar stores are getting left in the dust. Radio Shack sent out its first holiday circulars on Nov. 1, and Old Navy, a division of Gap Inc., began featuring some of its holiday wares a week earlier this year.
Expect more companies to follow in the coming days, said Marshal Cohen, chief retail analyst at NPD Group, a Port Washington, N.Y., market research firm, as big-box giant Wal-Mart Stores Inc. prepares to unveil its holiday specials. Last year, the Arkansas company didn't begin pushing its holiday promotions until the day after Thanksgiving, known as Black Friday. While online sales are growing much faster than consumer spending in traditional stores, Internet purchases are still only a fraction of overall holiday sales, according to retail industry figures.
''Retailers want to get shoppers out in stores before the first heating bill gets in," Cohen said. ''The mass merchants will get hit the hardest and first when it comes to the tight-purse syndrome we're going to see this holiday."
These promotions are catching the eyes and wallets of some budget-minded consumers, like Sabrina Joyce of Lynn. The mother of three began her holiday shopping two weeks ago, lured by discounts at Saks Fifth Avenue, Lord & Taylor, and Toys ''R" Us.
''This is the first year of my life that I'm out shopping this early," said Joyce, while browsing for gifts on Thursday at Marshalls in Downtown Crossing. ''I'd rather get the shopping done now before my bills come. The gas and oil have gone up so much, it makes you stop and think, especially if you have a family."
The National Retail Federation, a Washington, D.C., trade association, recently forecast that in-store Christmas holiday sales will slow this year, growing about 5 percent to $435 billion, compared to a 6.7 percent jump in sales in 2004 because of higher energy costs.
For the first time, the federation this year broadened the categories it tracks, adding food and beverage stores, health and personal care retailers, florists, gift shops, among others. This made its total holiday sales estimates roughly double the industry figures typically used to track consumer spending.
According to the federation's 2005 Holiday Consumer Intentions and Actions Survey, the average shopper plans to spend about $738.11 this holiday season and more than one-third of consumers said that sales or discounts are the most important factor in their decision to purchase from a particular store.
Kent Anderson, president of Macys.com, said he expects early promotions and offers like reduced shipping to attract shoppers now and hopefully keep them spending for weeks to come -- despite the big energy bills.
The company already mailed out $10 online discounts to customers enrolled in their rewards program and now is sending tailored promotions to consumers based on past purchases. And the free shipping offers will continue.
''Free shipping is the most appealing offer that consumers react to on the Internet," Anderson said. ''We're willing to reward customers with free shipping if they're willing to spend a little more with us."
Jenn Abelson can be reached at abelson@globe.com ![]()