The four-week holiday shopping season officially begins this Friday. It's a time which retailers await eagerly, because for many it means the difference between a good and bad year. Many merchants count on the holiday season for more than 40 percent of their annual sales.
"This is the most critical time of year for retailers," Vitner said. "Their measure of success depends on the next four weeks. The good news is they have been gearing up for b sales, and they shouldn't be disappointed."
In the Southeast, Vitner projects holiday sales to increase: 7% in Florida 6.5% in Virginia 6% in North Carolina and Georgia 5.5% in Maryland and Washington, D.C. 5% in South Carolina 4.75% in Tennessee and Alabama Vitner said many factors will drive b holiday sales in the Southeast, including: Solid job and income growth. Many states in the Southeast, including Florida, Virginia and Maryland, are enjoying their best job growth in recent years. b consumer confidence. Many people feel good about the economy and their own economic situation, and consumers appear to be unfazed by the recent stock market volatility. "Share prices are still considerably higher than they were a year ago," Vitner said. Abundance of bargains. Fierce competition among retailers means good news for buyers as merchants implement aggressive pricing strategies -- prices are up only 0.5 percent over last year -- and offer promotions to attract shoppers. The price pressure, however, shouldn't dampen retailers' profits. Retailers, Vitner said, operate much more efficiently today as a result of increased technology and better distribution systems. Computers will again be hot items for Santa's gift bag this season. But unlike previous years, computer purchases will not take as many sales away from other retail items. Computer prices have fallen dramatically -- with powerful systems available for under $1,000 -- leaving consumers with more cash to make additional purchases.
Vitner expects sales of digital video disk players to take off, as people upgrade from VCRs. Home video games also should do well, with demand from both children and adults. The early cold snap along the East Coast should provide a sales boost to clothing stores, Vitner said. And mutual fund shares also will be a popular gift item.
"Overall, I think this will be a merry shopping season for most merchants," Vitner said. "I can't see anything on the economic horizon that would keep this shopping season from being a b one."
Charlotte-based First Union Corp. is the nation's sixth-largest bank holding company with assets of $144 billion as of Sept. 30, 1997. First Union provides financial products and services to more than 12 million customers throughout the East Coast and nation.
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