Vegas retailers hoping for strong shopping season

Phil Levine

Friday, Nov. 26, 1999 | 10:55 a.m.

Shopping

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Las Vegas consumers began the last holiday shopping season of the millennium today in shopping mall lines and on the Internet.

With scores of retailers promoting early morning specials, long lines of customers anxious to begin their holiday shopping were reported at several Las Vegas malls.

Adding to the frenzy of early morning activity at one local mall was the wave of Pokemon fervor currently sweeping young America.

"One of our retailers, Kay-Bee Toys, advertised several limited time specials for their 6 a.m. opening, including a limited number of Pokemon toys," said Frank Wheat, general manager at Meadows mall. "By 6:30, we had about 250 people lined up to get into that store. As well, the Disney store had its own specials, with an additional 100 or so people lined up there."

Wheat said a first-hour tally of customers by the mall's J.C. Penney outlet found a 5 percent increase over the same time last year; the retailer declined to release an actual head count.

The story was much the same at Henderson's Galleria mall at Sunset.

"We had sizeable crowds forming outside our mall at 5 a.m. this morning," said Galleria general manager Mike Wethington. "I was told that Mervyn's gave out several hundred promotional season ornaments within the first 10 minutes of opening. There's also lines at other stores throughout the mall. It looks to me like it's a busier start than last year, which was a good year for us too."

On the Las Vegas Strip, early morning customers lined up to shop at the Fashion Show mall.

"We had at least 100 people lined up to take advantage of the Disney Store's annual Beanie Baby promotion," said Fashion Show general manager Scott Freshwater. "We've got quite a mix of people shopping today, including a lot of visitors from out of town. Judging by the number of full bags this early in the day, I think we're off to a strong start."

Today's long lines come as no surprise to local merchants. A solid economy -- combined with consumer willingness to spend more cash -- translates into optimistic predictions from retailers for another strong holiday season. Industry analysts expect 1999 holiday sales nationwide to surpass last year's $170 billion mark.

"Overall, we've been up about 5.5 percent (in sales) this year, and all indications are that the holiday season will be more of the same," said John Bucksbaum, chief executive officer of General Growth Properties, owner of the Meadows and Boulevard malls. "Las Vegas properties remain very strong for us, so we'd expect to see a good return from those malls this season."

Other local retailers share that seasonal cheer.

"The overriding question is 'do people feel comfortable with spending money on gifts?' This year the answer is yes," said Vicki Duncan, marketing director of the 130-store Galleria at Sunset.

Robin Folk, marketing director for Fashion Show, said his mall's retail sales through the end of September increased 10 percent over the previous year.

"There's not a single category of retailer that hasn't seen an increase in sales," he said. "I believe the opening of the Bellagio, Venetian and Mandalay Bay (hotel-casinos) have dramatically helped our sales.

"Tourists make up 60 percent of our business, so it's not surprising our numbers are up." Merchants at the 800,000-square-foot mall include five department stores and 145 retail shops.

Retailers at Nevada's largest mall are also expecting a record-setting season.

"We've seen double-digit growth all year," said Sue Brandt, marketing director for the 1.2 million-square-foot Boulevard mall. "That's been especially true during the last three months. Today is the big day, though, as it is the start of what we expect to be a very, very strong holiday shopping season."

George Connor agrees that all signs point to a bountiful holiday season for local merchants.

"This is shaping up to be an outstanding Christmas for local retailers, particularly those on the Strip," said Connor, senior vice president at real estate broker Colliers International. "The visitor numbers are up, and that means substantially more foot traffic for Strip properties.

"Also, there's a lot of wealth being generated these days, particularly among the 25 to 30-year-old crowd involved in the media revolution in Silicon Valley. Many of those folks will likely spend Christmas here."

This season's retailing prosperity likely won't be limited to the Strip. Representatives of Las Vegas' suburban malls also report strong increases in sales so far this year.

"We've had a record-setting year so far," said Brenda Caputo, marketing director of Meadows mall. "To date, our annual sales are up 15 percent over last year. I think the driving factors behind that growth include our convenient location just off the highway, and the strong growth in the northwest section of the city."

A recent consumer survey by professional services firm Deloitte & Touche should further bolster the confidence of retailers on or off the Strip.

In its annual "Consumer and Retailer Mood Survey: Retail Holiday Outlook," Deloitte & Touche found 79 percent of consumers expect to spend at least the same or more than they did last year; only 21 percent of shoppers expect to spend less this year.

In the Western United States, 80 percent of those surveyed plan to spend as much or more this holiday season.

Deloitte and Touche polled 1,087 consumers via mail and telephone during September and October. The survey's margin of error is 3 percent.

Nationally, consumers plan to spend an average of $849 on holiday gifts, up from $814 last year. Shoppers in the Western United States will spend more than their counterparts in other regions, an average of $1,052 compared to $717 last year. However, Deloitte and Touche cautions that figure reflects a "handful of affluent households in the Pacific Northwest whose shopping budgets ranged from 10 to 100 times the average."

Discount department stores remain the venue of choice for most holiday shoppers. In the West, 37 percent of shoppers will frequent discount stores, about 10 percent less than the national average.

Superstores will attract about 16 percent of Western U.S. holiday shoppers, while 15 percent of consumers prefer traditional department stores.

This holiday season may also turn out to be the most successful virtual shopping period ever.

Deloitte and Touche conducted a separate survey of online consumers, and found computer-based shoppers expect to spend an average of $219 buying holiday gifts via the Internet.

Deloitte & Touche Global Managing Director Irwin Cohen said computers have become "the virtual mall for many consumers who are shopping for all types of goods and services." Cohen said Internet sales will represent about 20 percent of consumer spending this holiday season.

The online survey found convenience was the biggest attraction of shopping on the Internet. Nearly 75 percent of survey respondents cited the ability to shop 24 hours a day, seven days a week as their primary reason for purchasing goods online.

Not surprisingly, retailers large and small are launching web sites hoping to capture their share of the burgeoning market.

Simon Property Group, owner of the Forum Shops at Caesar's and the nation's largest mall owner, recently announced online ventures aimed at expanding its market share.

Simon recently created a new company, clixnmortar.com, to give shoppers the benefits of online shopping; the company has also developed websites for each of its malls, which are in turn linked to individual retailers' websites. Last week, Simon also introduced plans to offer in-mall Internet service to customers in a joint venture marketing program with Turner Broadcasting Systems.

Still, all this virtual retail activity isn't expected to have any significant impact on actual bricks and mortar stores this year.

"You could double, or even triple, the amount of retail activity online and it still wouldn't impact the growth of sales locally," Connor said. "As well, in Las Vegas, shopping has evolved into an experience beyond just buying goods. People come in to the stores expecting a variety of experiences that can't be found surfing the Internet."

Local retailers readily embrace the idea that online shopping is a supplement -- rather than a replacement -- for in-store sales.

"Shopping is really still a touchy-feely experience for most people," said Caputo of the Meadows mall. "People still enjoy the feeling of shopping among other people."

Adds the Fashion Show mall's Folk: "When all is said and done, people still crave the experience of shopping in a busy mall."

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