Retailers' holiday pitch: Let's make a deal

NEW YORK - From free shipping at Wal-Mart to Sears stores open on Thanksgiving for the first time, the battle for holiday shoppers' dollars has begun.

The early competition to break through shoppers' caution about spending promises savings for those willing to buy amid an economy that is still worrying many. It also promises convenience. Retailers are offering deals anytime, anywhere their customers want, through websites, smart phones, and Facebook.

Black Friday, the day after Thanksgiving that typically kicks off holiday shopping, is not only being marketed as part of "Black Friday week," but for a growing number of stores, there is "Black Friday month."

As for Thanksgiving Day, retailers such as Sears Roebuck and Old Navy hope shoppers will head to stores after they finish their turkey feasts.

On the Web, Kohl's Corp. and Target Corp. are among many merchants that will be dramatically stepping up deals that day, counting on it to be one of the busiest days of the year online.

"Everything is faster and sooner," said Dan Grandpre, editor-in-chief of Dealnews.com, of Huntsville, Ala.

Wal-Mart Stores Inc. is clearly going for the jugular in the holiday retailing fight. It said Thursday that it would offer free shipping on nearly 60,000 online items - with no minimum purchase requirement. Return shipping is also free, or items can be returned to a local store.

Wal-Mart's offer comes on top of similarly aggressive free-shipping programs from Target and J.C. Penney. Wal-Mart's deal adds to the discounter's Site to Store program, which lets customers buy an item online and have it shipped free to their local Walmart store for pickup.

Walmart.com is even testing a service at nearly 800 stores that lets customers see inventory and purchase products from home and then pick them up at a store within four hours.

That concept isn't new, but many stores are joining the company in trying to speed up the turnaround time, said Noam Paransky, retail strategist at Kurt Salmon Associates.

"Retailers are trying to be in front of customers 24/7," Paransky said. "It's exploding this year" with the growing use by consumers of smart phones.

Facebook.com recently launched its Deals program, teaming up with a number of stores including Penney and Gap Inc. The offering allows shoppers to "check in" using smart phones to these shops and reap rewards or discounts.

The intense marketing is happening in a season in which shoppers are expected to spend only a little more than last year. Unemployment is still stuck close to 10 percent, and consumer confidence has been anemic for months and months.

The National Retail Federation expects a 2.3 percent increase in spending to $447.1 billion. That would fall slightly short of the 10-year historic average of a 2.5 percent annual rise.

Prospects are brighter for online sales, with the research firm comScore Inc. projecting a 7 percent to 9 percent sales increase compared with a year ago. About 10 percent of holiday sales are made online, according to Forrester analyst Sucharita Mulpuru.

"You clearly have a consumer who is restrained," said Kevin Mansell, president and chief executive of the department-store chain Kohl's Corp. "So you have this drive to encourage consumers to spend."

But he said there was a bigger factor. "Retailers have to move with the consumer, and the consumer wants ultimately flexibility of buying," Mansell said. "You have to move with her."