Retailers want Christmas now

Nervous about the sagging economy, retailers are in a rush to get customers started on their Christmas shopping.

Department store Kohl's extended its Saturday hours until midnight, offering 20 percent off already discounted toys. Walmart is hawking deeply discounted turkeys. And Sears launched "Black Friday Now" sales, nearly a month before the day after Thanksgiving, selling a 42-inch plasma TV on Saturday for $499, a discount of $151.

"I think retailers are very, very worried about the Christmas season - and they should be," said Britt Beemer, CEO of America's Research Group. "Nobody's had very spectacular sales all year. Everybody is figuring out their way to get their slice of the pie."

Shoppers are more skeptical this year - some almost to the point of saying, "bah, humbug." Jay Scott of Hendersonville said he'd be happy if he didn't have to buy any presents.

"We're making less, but everything else is going up, like our cable and water bills," he said. "We just got notices for those. We got hit with our electric last year."

Bad sales season expected

Scott and his wife, Kristy, took their 6-year-old son, Carson, to see Santa at the Bass Pro Shops on Sunday. As parents, they said they aren't asking for any presents. Kristy said they might splurge on a flat-screen TV if they can find a good enough deal.

"To me, there's not much difference in the prices," she said.

Holiday sales figures are expected to be in the doldrums this year because consumers, hit with unemployment, tighter finances and jitters about the economy, are planning to spend less on gifts. The National Retail Federation expects holiday sales to dip 1 percent, the second-worst holiday season since 1995, with two-thirds of customers saying the economy will affect their holiday plans.

Retailers "are trying to do what they can to lure customers in their front door by saying, 'Here is the deal now,' " Beemer said.

Shoppers' views differ

Some consumers like it, but some don't. Karri Davis of Frankfort, Ky., shopping on Sunday at Opry Mills, said she was a little aggravated by earlier sales and hype surrounding them. She considers herself immune to the blitz.

"It's ridiculous," she said. "It just gets earlier and earlier every year. I have to hear, 'I want this. I want that,' all the more now. We're pretty tight on our budget. We plan to stick to it."

Chastity Wilburn of Chapel Hill, Tenn., said the discounts don't mean much to her unless they're for necessities. She finished her Christmas shopping last week and didn't realize she'd hit the shopping season already in progress.

"I don't like big, big crowds," she said. "That's why I shop so early."

But the earlier the better, say shoppers like Paula Morgan of Jackson, Tenn. She and her husband, Brodie, met up with daughter Karen Scott of Hernandez, Miss., and set out for Opry Mills.

"I love it," Morgan said. "I'm tired after Thanksgiving from all the cooking and entertaining and cleaning."

That sentiment isn't lost on the retailers. Sears launched its "Black Friday Now" program on Halloween, with different deals for the Saturdays before Thanksgiving, such as 60 percent off winter coats. The department store said the program appeals to customers who "don't enjoy the thrill of hitting the stores at 4 a.m. the day after Thanksgiving for amazing deals."

Butch Balentine, general manager for RiverGate Mall's Sears, said sales at his store on Halloween showed double-digit growth compared with the same day a year ago. Some discounts were similar to sales starting on Black Friday last year, but the bargains are being pushed even earlier this year, Balentine said.

"People are really responding," Balentine said. "I think the customer is going to look for the best price they can get."

Discounts in demand

Walmart on Saturday also rolled out deals on electronics, including a $199 Xbox 360 Arcade Console with a $100 Walmart gift card, and sold turkeys at 40 cents a pound.

"We're proving that we're committed to helping moms afford the holidays in these tough economic times," said Jack Sinclair, Walmart's executive vice president, groceries.

Stores that put out the best values early will resonate with customers, said Jennifer Black, president of research company Jennifer Black & Associates.

"Today's consumer's pocketbook is clearly limited this year, and those retailers who are first to the table with the best value for the price will be the clear winner this holiday season," Black said.

Meanwhile, other stores have set up elaborate, interactive Christmas displays to get more customers through their doors. On Sunday, Bass Pro Shops Outdoor World in Opry Mills opened Santa's Wonderland, a section of its store that offers holiday craft activities, a remote racecar track for kids and a free photo with Santa.

Santa Claus already arrived at Franklin's CoolSprings Galleria, and some stores like J.C. Penney are opening as early as 7 a.m. on Saturdays to make the most of every shopping day.

Discounts will play a large role when consumers buy gifts this year, analysts said. Consumers want at least 50 percent to 60 percent off and will be even more influenced by advertising this year, according to America's Research Group.

"Consumer sentiment is much worse. They've been in this economic downturn way too long, so they are upset," Beemer said. "They don't like being in an economic straitjacket where they can't do anything."

But retailers will need to be mindful of balancing their aggressive ads with how consumers feel, some analysts said.

"It's really this love-hate relationship," said Ellen Beeson Zentner, senior economist with Bank of Tokyo-Mitsubishi UFJ. "Consumers don't want consumerism shoved in their face with these discounts and promotions, but how can they pass them up because they want to get the best deal this season?"

Karen Scott said she tries to keep it all from getting too stressful. She falls back on gift cards for whomever she can't scratch off her list.

"That way, they can go hit the big sales," she said.