After Christmas Sales: Retailers Hope for Boxing Day Miracle

by Tina Kells | December 25, 2008 at 05:56 pm

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Retailers like Walmart, Kmart and Best Buy, are hoping to boost sluggish holiday numbers with aggressive after Christmas sales. Boxing Day has traditionally been a big shopping day but this year retailers have pinned high hopes on making some big sales.

The economic downturn combined with unusually harsh winter weather conditions has left retailers in North America looking for ways to boost their end of year numbers. After Christmas sales bonanzas are expected to be a major part of the profit building strategy of most major retailers.

But retailer trend watchers are warning consumers that this year the Boxing Day deals may be a bit disappointing. Most retailers can not afford to take huge losses on big ticket inventory items like TV's computers and appliances. Boxing Day sales are more likely to center around seasonal items, clothing and other short shelf-life inventory.

Shoppers shouldn't expect big discounts on TVs or Blu-Ray players, but they are likely to find deals on clothing, toys and electronics that are considered seasonal like digital picture frames, de Grandpre said.

Despite doorbuster specials retail analysts say the turnout likely won't be as large as that typically seen on Black Friday. Retailers said they are taking the usual precautions and are being diligent about crowd control and security, although they do not expect that to be an issue today.

Stores will be focused on clearing out seasonal items, but many retailers have adopted creative strategies and are treating this week as an opportunity to sell year-round and spring items.

JCPenney opened at 5:30 a.m. and is offering twice last year's number of doorbuster specials until 1 p.m. With New Year's resolutions in mind, the company is advertising sales on its private sportswear brand, athletic shoes and exercise equipment. And it is also targeting teen shoppers, with promotions that start with a mobile-phone wake-up call.

"The day after Christmas is one of the biggest shopping days of the year for the teen department," said Rebecca Winter, JCPenney spokeswoman. "They [teens\] come in with gift cards and Christmas cash. They want newness and freshness and the latest, greatest style."

Sears and Kmart also say their after-Christmas sales are focused on more than the usual clearance items, said Tom Aiello, a spokesman for Sears Holding Corp., the parent company of Sears and Kmart. Sears is offering a $25 gift card with a set of new tires as well as sales on a garage-door opener, tools and tool storage items, home electronics and fitness equipment.