Dollar Store Holiday and Christmas Season

Many dollar stores and retail shops in general started their Christmas sales early to bring up sales.

We think they beat the numbers of other retailers in getting shoppers even though it is no surprise that we have a down economy and people are reducing drastically their holiday budgets. Almost 70 percent of shoppers say the dismal economy will change very much the way they shop, according to Deloittes 23rd Annual Holiday Survey. And if all goes the way it has, Dollar Store and Discount stores are expected to be the most popular destinations of this Holiday and Christmas season.

75 percent of consumers said theyll select retailers that offer them good discounts, while 73 percent of people said they plan to make shopping decision based on low prices. Convenient location, quality, selection of merchandise, and customer service all matter less to shoppers this year than it has in the past. In addition, more Americans are adding 99 cents and dollar stores, and outlet stores to their shopping destinations.

And although about 60 percent of Americans plans to cut their holiday budgets, they named higher food and energy prices as the top two reasons for spending less, beating out the economy and job uncertainty which is a suprise. About 12 percent of consumers are also still paying off holiday debt from last year in their credit cards ! which is not good.

Scott Krugman, a spokesman for the National Retail Federation, spoke about the down economy.

It all revolves around inventory levels, he says, adding that the retailers with least amount of overstock at the end of the season will be best equipped to weather the coming months. He also suggests integrating a variety of commerce channels. Retailers benefit from cross-promoting their Web sites and their brick-and-mortar stores, he says, since many retailers now let customers buy items online and then pick them up at store locations. Also increasingly popular: Sites offering customers the ability to track inventory online so they know theyll find what theyre looking for before they set foot in a store.

Well see what happens, but 2008 will definite be a different Dollar Store Holiday Season.