Chains make holiday plans, but will they get their wish?

Drug Store News, Sept 23, 2002 by John Stone

Going against the strategy of other retailers, Big A Drug Stores chief executive officer Edward Dallal said he is increasing inventory and reducing advertising. He remains bullish on holiday sales.

Based on 31 years in this industry, I know that you really can't anticipate. Every time you expect a bad year, you have a good year," he said.

Dallal said his buyers have increased seasonal inventory by more than 10 percent because Big A ran out of decorations and lights last year. Big A will be "more conservative" with ad spending, and focus on circulars, a coupon book and some Pennysaver advertising. "Our holiday circulars will go out the first week of November, and we expect customers will begin buying the Tuesday before Thanksgiving," Dallal said

While Big A had a "big finish" in last year's season, business ended up one or two points lower than 2000, according to Dallal, but he expects the same finish to produce 3 percent to 5 percent sales growth this season.

Consumer confidence slips

100 = 1985 confidence level

2001

M     115.5
J     118.9
J     116.3
A     114.3
S      97
O      85.5
N      84.9
D      94.6

2002

J      97.8
F      95
M     110.2
A     108.8
M     110.3
J     106.3
J      97.4
A      93.5

Source: NFO WorldGroup

Note: Table made from line graph

Retail sales in the November-December 2001 period rose an estimated 5 percent to 6 percent. Do you think sales this holiday season will be better, worse or about the same as last year? Cast your vote at www.drugstorenews.com under the industry poll icon.