Retailers offer holiday shopping discounts early to boost profits

By John Paul (jpaul@wsbt.com)

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Some shoppers aren't waiting until Black Friday, as many stores are offering steep discounts now to lure in customers. (AP Photo/Lisa Poole)

By WSBT News1

Story Created: Nov 24, 2008 at 5:48 PM EST

Story Updated: Nov 27, 2008 at 1:04 PM EST

MISHAWAKA — The economy is affecting both consumers and retailers. Now stores are working extra hard to bring in foot traffic that could mean the difference between sales in the red or black.

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Several area retailers have started opening their locations much earlier and closing time has been extended as the holiday shopping season swings into high gear.

While Black Friday is the day most consumers can find deep discounts, shoppers aren't waiting because many stores are offering steep discounts now.

"We've seen a lot of guests in here trying to find the best value they can find," said Rachel Gosc, Executive Team Leader at Target.

Many shoppers around Mishawaka said they found stores offering "Buy one get one 1/2 off" and "50% off" specials.

"What you are seeing is not imaginary," said Mary Studer, economics professor at Saint Mary's College.

Studer believes stores are doing their best to stay profitable.

"Consumers are starting to back off on their purchases," Studer said. "The first group that's going to feel anything is retailers."

Some retailers have already felt the pinch.

Steve and Barry's announced it is closing hundreds of stores across the country including its South Bend location. Value City Department Store is closing its Mishawaka store. Linens-N-Things has closed its doors and Circuit City has filed for bankruptcy protection.

"Wal-Mart might be the exception," said Studer. "For most retailers it's going to be a bad season unless they can get people to part with what's in their wallets."

For some families that might be easy.

"We've been spending more this year," said Tamatha Jernigan.

But for others, it'll be difficult.

"We'll spend less, lots less," a shopper told WSBT News.

"It's a tight rope that they're walking," said Studer. "They're trying to bring in as much revenue as they can and possibly lose customers."

Several retailers we talked to said despite the economic challenges, they're still expecting large crowds on Black Friday.

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