For sure profits have faded as stores approach the home stretch for Christmas business. Thanksgiving results gave retailers a glimmer of hope but traffic sharply dropped in the days following. So U.S. stores nationally are pulling out all the stops to attract customers as they dazzle them with even deeper reductions.

I wondered post Thanksgiving "how low can they go?" but the markdowns being rolled out this week are startling!! Luxury, better, and mid-tier stores are offering multiple reductions that include markdowns plus extra savings passes. When totalled, savings range from 40- 90%. The deals are valid on already reduced merchandise as well as new receipts.

It's obvious the store's mission is to clear as much inventory as possible at any cost in anticipation of Spring'09 receipts.

In prior years, Holiday results & buying patterns effected Spring assortments with adjustments to be made from any significant buying patterns that emerged from Holiday sales trends. This year will be a bit more difficult to analyze as customers are being driven by price first then key item or trend.

So if we think that Fall – Holiday '09 is a challenge, then Spring'09 is bound to be just as tough. So under these conditions what is a retailer to do? The solution is to give the customer a reason to buy….a wardrobe "refresher" …..something she doesn't already have in her closet.

So what's "the carrot " that will kick start all the stalled shopping genes?

 
Here are some of my early call outs that have "carrot" potential;

«     Harem pants and dhoti silhouettes than are not extreme but soft & drapey

«     The jumpsuit in fluid bodies, belted or unbelted. Often with safari details

«     Bold accessory statements that are bejewelled & flashy….rings, necklaces, bangle bracelets & cuffs

«     Metallics & shimmer for apparel, accessories & eye shadow! Look for lame fabrics, sequins & beads.

«     Elegant embellishments on party dresses to Tee shirts

«     Bright colored handbags for a hit of color….especially clutch styles

«     Say goodbye to short boxy bodies in jackets & hello to the elongated "boyfriend" jacket
 

This is only the first glimpse of Spring 2009 as we all need a break from Holiday pandemonium.  I will continue to update the "call outs" as U.S. stores build their Spring assortments.

 
Till next week……Happy Christmas shopping & definitely do not forget those savings coupons!!

Cheryl