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CNN Live Sunday

Post-Thanksgiving Spending Is Up, But Mall Traffic is Down

Aired November 26, 2001 - 18:55   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.
DONNA KELLEY, CNN ANCHOR: For retailers, the Thanksgiving weekend marks the traditional start of the holiday shopping season, and so far, Treasury Secretary Paul O'Neill says that the early figures are encouraging, a sign that the U.S. economy may be coming back.

CNN's Brian Palmer takes a closer look at the spending spirits of this weekend's shoppers.

(BEGIN VIDEOTAPE)

BRIAN PALMER, CNN CORRESPONDENT (voice over): This holiday shopping season is unique, and some say vital for the economy. In these first few days, some shoppers say they're seeking bargains and a return to normal. Others say they're being patriotic.

(on camera): Have you done holiday shopping yet?

UNIDENTIFIED FEMALE: And I wasn't planning on it. We spent a lot of money.

PALMER (voice-over): For retailers, there is some good news and some bad news about post-Thanksgiving shopping. Sales were up slightly compared to last year, but there were fewer shoppers in the nation's mall.

(on camera): Retail sales are up but mall traffic is down. What does that mean?

KURT BARNARD, ANALYST: Yes, but you have to remember retail sales are up only by about two-and-a-half percent on a (UNINTELLIGIBLE) basis, and that is exactly the rate of inflation. So basically we are ending up with nothing. There's no improvement over last year.

PALMER (voice-over): It's the sagging economy, say analysts like Kurt Barnard. Last year, retail sales were stronger after Thanksgiving, stronger than this year, leading some analysts to predict a banner year for retailers. That didn't happen. Instead, many consumers decided to tighten their belts.

This year could bring more of the same. Sam McKinnon says he'll spend 30 percent less. SAM MCKINNON, SHOPPER: All in all, we'll have to see how the economy goes. I have three kids to feed, and a wife, and you got to hold your pennies now and see what happens.

PALMER: To boost traffic, some stores are running sales and selling off inventory.

BARNARD: Very seldom before have consumers been able to access bargains like the kind they are being able to access now.

PALMER: So far, housewares, toys, and computer games have been top sellers. While some may be inclined to save, others have an entirely different philosophy.

UNIDENTIFIED FEMALE: Well, people are saying the economy is down, then we'll just help it out by doing our fair share of shopping.

PALMER: And, perhaps even more than their fair share.

Brian Palmer, CNN, New York.

(END VIDEOTAPE)

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