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CNN Live At Daybreak

Holiday Shopping: Retail Readout

Aired November 08, 2002 - 05:42   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: It is hard to believe but the holiday shopping season is already here. And despite the weak economy, retailers say shopping is getting off to a strong start.
CNN's Kathleen Hays reports.

(BEGIN VIDEOTAPE)

KATHLEEN HAYS, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): It starts with Halloween tricks and treats, then comes the day after Thanksgiving when shoppers get really serious and it ends in late December with hurried last minute purchases. It's the holiday shopping season when many U.S. retailers make the bulk of their profits. And some say October's chain store sales show the season got off to a decent start, warmed up by cool weather that spurred seasonal purchases.

BOB BUCHANAN, A.G. EDWARDS: We got some better weather, of course, especially the back half of the month, and that lifted sales nicely. So our index was up about 3.1 percent for October. So it was a nice month.

HAYS: But analysts say it took deep discounts to spur those sales. And with the job market weak, war with Iraq looming and consumer confidence sliding, holiday sales may suffer despite the Federal Reserve's deep interest rate cuts this week.

BARRY HYMAN, INDEPENDENT STRATEGIST: Once again, the rate cuts were done, I think, to save a rather poor Christmas. But evidence tells me that the consumer is stretching that dollar, maybe not buying that next winter coat, trying to get through the season.

HAYS: An annual survey of holiday shopping plans from Myvesta.org shows Americans plan to spend $722 on average this year for holiday gifts and 42 percent say they'll spend less than $500.

FRED CRAWFORD, CAP GEMINI ERNST & YOUNG: We've pulled in a lot of purchasing clout with the 0 percent financing on big ticket items. We've begun discounting deep and early and it's going to take whatever small gust of wind we had in our -- in our holiday sales right out the door. So it's going to be a disappointing year.

HAYS (on camera): One ray of hope is the wave of mortgage refinancings this year that put a pile of cash in consumer's pockets. A study by Deloitte Research says this will spur stronger spending by year's end.

Kathleen Hays, CNN Financial News, New York.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired November 8, 2002 - 05:42   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: It is hard to believe but the holiday shopping season is already here. And despite the weak economy, retailers say shopping is getting off to a strong start.
CNN's Kathleen Hays reports.

(BEGIN VIDEOTAPE)

KATHLEEN HAYS, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): It starts with Halloween tricks and treats, then comes the day after Thanksgiving when shoppers get really serious and it ends in late December with hurried last minute purchases. It's the holiday shopping season when many U.S. retailers make the bulk of their profits. And some say October's chain store sales show the season got off to a decent start, warmed up by cool weather that spurred seasonal purchases.

BOB BUCHANAN, A.G. EDWARDS: We got some better weather, of course, especially the back half of the month, and that lifted sales nicely. So our index was up about 3.1 percent for October. So it was a nice month.

HAYS: But analysts say it took deep discounts to spur those sales. And with the job market weak, war with Iraq looming and consumer confidence sliding, holiday sales may suffer despite the Federal Reserve's deep interest rate cuts this week.

BARRY HYMAN, INDEPENDENT STRATEGIST: Once again, the rate cuts were done, I think, to save a rather poor Christmas. But evidence tells me that the consumer is stretching that dollar, maybe not buying that next winter coat, trying to get through the season.

HAYS: An annual survey of holiday shopping plans from Myvesta.org shows Americans plan to spend $722 on average this year for holiday gifts and 42 percent say they'll spend less than $500.

FRED CRAWFORD, CAP GEMINI ERNST & YOUNG: We've pulled in a lot of purchasing clout with the 0 percent financing on big ticket items. We've begun discounting deep and early and it's going to take whatever small gust of wind we had in our -- in our holiday sales right out the door. So it's going to be a disappointing year.

HAYS (on camera): One ray of hope is the wave of mortgage refinancings this year that put a pile of cash in consumer's pockets. A study by Deloitte Research says this will spur stronger spending by year's end.

Kathleen Hays, CNN Financial News, New York.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com