Stores lure post-holiday buyers

NEW YORK — The nation's retailers ushered in the post-Christmas shopping season on Tuesday by slashing prices even more on holiday items and stocking up on full-price merchandise.

With the 2006 pre-Christmas season falling short of sales expectations for many merchants, the retail industry hoped that shoppers, armed with gift cards, would spend freely in the weeks ahead on discounted items as well as fresh merchandise. That will help boost business in December and in the fourth quarter.

The big exceptions were luxury stores and the online businesses, both of which did better than expected this holiday season. Meanwhile, deep discounting of flat-panel TVs and other gadgets led to a buying surge, as well as a profit blow to Best Buy Co. and Circuit City Stores Inc.

Federated Department Stores Inc.'s Macy's opened its doors at 7 a.m. Tuesday and offered discounts ranging from 50 percent to 75 percent. Toys "R" Us Inc. offered 50 percent discounts on selected toys. The toy seller also was featuring hot toys from 2007 in its stores.

Merchants "are going to use all 31 days in December" and the month of January, said Marshal Cohen, chief analyst at NPD Group Inc., a market research company in Port Washington, N.Y.

Shoppers appeared to be focusing on discounted holiday items on Tuesday. Stores aim to clear out holiday leftovers soon to make room for the fresh merchandise — including new winter items as well as early spring fashions.

At the Sears, Roebuck and Co. store at Buckland Hills mall in Manchester, Conn., mother-daughter team Meg Tougas and Alissa Tougas, from Willington, Conn., arrived just after 7 a.m. They picked up a 4-foot inflatable snow globe for the front yard for $49.99 — a 50 percent discount.

"I eyed it beforehand and checked it out online," Meg Tougas said.

At a nearby Bath & Body Works store, Maria Ness of Glastonbury, Conn., was loading up on hand lotions and other items for herself. "I've been waiting for the sale," Ness said.

Meanwhile, at Carousel Mall in Syracuse, N.Y., there were more mall walkers than shoppers when J.C. Penney opened its doors at 6 a.m. Pat Dunn of Syracuse, who was browsing around the housewares section looking for sale items, said her trek was an annual affair. And, she said, she wasn't about to let the cold rain falling outside deter her.

"Everything is so marked up. This is the best time to shop," Dunn said. "This is for next year."