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A CLICK AND MORTAR CHRISTMAS.


While e-tailers will undoubtedly take a bite out Verb 1. bite out - utter; "She bit out a curse"
let loose, let out, utter, emit - express audibly; utter sounds (not necessarily words); "She let out a big heavy sigh"; "He uttered strange sounds that nobody could understand"
 of holiday business for malls, times are good enough to suggest a strong year for everybody

EMPTY mall parking lots? Deserted cash registers? Lonely Santas? Sales help with nothing to do? Yeah, right.

Sure, the prospects are huge for Web-based shopping this holiday season, but area malls will be anything but empty.

In fact, retail expectations for Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  are at least as high -- and perhaps somewhat higher -- than the overall 6.5 percent sales increase projected by the National Retail Federation. Bolstered by the strong economy, some individual retailers are anticipating increases as high as 30 percent.

To date, many retailers have seen increases of 8 percent or more over last year. Some say they expect double-digit percentage hikes for November and December, even though consumer confidence numbers have fallen in recent months amid concern about the volatile stock market and higher interest rates.

One imponderable im·pon·der·a·ble  
adj.
That cannot undergo precise evaluation: imponderable problems.



im·pon
 this year: a longer holiday season. The big rush usually ends on Dec. 24, but this year millennium celebrations are expected to generate lots of business during the week between Christmas and New Year's.

"We've already had quite a few customers come in and do their shopping early, buying 15 to 20 gifts at a time," said Marie Hildago, manager of the FAO FAO,
n See Food and Agriculture Organization.
 Schwarz toy store A toy store, or toy shop, is a retail business specializing in the services of selling toys. No longer held to the limitations of the brick and mortar outlet, the toy store has successfully created a presence within the e-commerce industry.  at the Glendale Galleria The Glendale Galleria is a large 3 story regional shopping mall located in Glendale, Los Angeles County, California. It is the second largest mall in Los Angeles County. It is located in Downtown Glendale. . "Many are buying higher-ticket items and more of the theme packages, like a lady who just bought a baby doll, bed, stroller and accessory kit for the doll."

Of course, e-tailing is clearly the biggest story for retailers -- so much so that a so-called click-and-mortar strategy is being employed by many merchants looking to maintain their traditional customer base and also hold onto those shoppers who might venture into cyber-space.

And there will be many -- up to 30 million Americans plan to do at least some of their holiday shopping online, and e-commerce sales overall could reach anywhere from $6 billion to $12 billion (depending on which survey you're citing), compared with $3.1 billion a year ago. That's still only a fraction of the overall retail take, but it's growing fast. By 2003, total online sales are expected to reach $78 billion a year, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 Jupiter Communications.

"What we're seeing is that the brick-and-mortar stores have finally awakened to the fact at to compete against e-commerce pure players is to beat them at their own game," said Paco Underhill, chief executive of Envirosell, a retail research and consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee
consulting company

business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a
 in New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
.

To fight that trend, L.A. malls and shopping centers are rolling out the red carpet to shoppers, adding a variety of new services and amenities to enhance the shopping experience. In addition, several malls are testing the waters with new and improved informational Web sites designed to attract and assist shoppers.

Glendale Galleria recently launched an updated Web site that provides store information, downloadable coupons and advice from a fashion and gift consultant. Meanwhile, the Beverly Center The Beverly Center is a shopping center in Los Angeles, California, United States. Description
The Beverly Center is a monolithic eight-story structure located at the edge of Beverly Hills and West Hollywood, California, between La Cienega and San Vicente boulevards.
 is installing six kiosks to provide store information and eventual access to Web sites.

"We really feel the Internet can be part of the whole shopping experience," said Laurel Crary Globus, general manager of the Beverly Center. "You can get more intimate with these stores and learn more about them through the Internet, which can foster more customer loyalty."

Like many retailers, FAO Schwarz is using its own Web site as a way to attract people to its stores rather than entice buyers to make online sales.

"I think our Web site generates interest, people see items they like on the site and then call our store to see if they can come in and see them," Hidalgo Hidalgo, state, Mexico
Hidalgo thäl`gō), state (1990 pop. 1,888,366), 8,058 sq mi (20,870 sq km), central Mexico. Pachuca de Soto is the capital.
 said.

Others malls and stores are upgrading customer service as a way to compete.

At Santa Monica Place Santa Monica Place is a three-story, 570,000 square-foot shopping mall in Santa Monica, California. The mall is located at the south end of the famous Third Street Promenade, and is also two blocks from the Santa Monica Pier and the beach. , where construction is obstructing access along Colorado Boulevard Colorado Boulevard (or Colorado Street) is a major east-west street in Southern California, United States. It runs from Griffith Park in Los Angeles east through Glendale, the Eagle Rock section of Los Angeles, Pasadena, and Arcadia, ending in Monrovia. , mall officials are touting a new holiday delivery service. From Nov. 26 to Dec. 26, the 140 stores will be linked to a company that provides same-day shipping service, generally within a 30-mile radius.

Patrons can call the store of their choice, purchase an item over the phone and pay $5 to $20 in delivery charges.

Glendale Galleria goes even further by providing concierge services of sorts with roving teams of tuxedo-clad employees who can answer customer questions and even provide gift suggestions.

"Holiday shopping can be quite stressful so we are always looking for Looking for

In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with.
 ways to make it easier for our shoppers," said Annette Bethers, senior marketing director of the Glendale Galleria, where holiday sales already are trending at 8.4 percent over last year.

To be sure, many merchants are painfully aware of shopper defections to the Web, especially in such categories as books, music and toys, which adds pressure to deliver good service. Toys alone are pegged to hit $250 million in online sales this year, and Santa Monica-based eToys stands to nab about 46 percent of that business, according to Forrester Research Forrester Research is an independent technology and market research company that provides its clients with advice about technology's impact on business and consumers. Corporate facts
  • Founded: 1983 by George F.
.

At toy retailer FAO Schwarz, the strategy is to woo customers with attention and assistance. Complimentary gift-wrapping and personal shopping consultants are routine offerings. Customers can even call in and schedule appointments, often with their favorite consultant.

As long as the economy stays strong, brick-and-mortar retailers may be able to hold their own against Web retailers.

"We are seeing no pervasive mood of frugality," said John Golisch, retail partner at Arthur Andersen For the U.S. Supreme Court case commonly known as Arthur Andersen, see .
Arthur Andersen LLP, based in Chicago, was once one of the "Big Five" accounting firms (the other four are PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG), performing
. "We have had a tremendous run with the economic situation this year, and despite dips in the stock market, consumer confidence is booming."

As a result, many consumers expect to spend more money this year.

"I always hope to spend less, but I spend more every year," said Ann Giacometti, 29, a media planner who was shopping recently at Robinsons-May in Santa Monica Place. "This year, I could easily spend hundreds of dollars. Although I cut corners on some places, I indulge in others and end up spending more."

At Beverly Center, Jennifer Kaufman expects to post 12 to 15 percent sales gains this holiday season at her eponymous boutique. She's already seen an increase, partially because of brisk sales of calf-haired French shoulder bags ranging in color from red to neutral.

"Red is hot this season," Kaufman said. "People aren't shying away from color. Part of that is from the millennium. There's a big blowout in terms of bigger, wilder in every-thing."

It's a sentiment being echoed by other stores banking on the millennium factor to drive sales. Whether it's millennium-inspired Monopoly games or Waterford crystal Waterford Crystal is a trademark brand of crystal glassware produced in Waterford, Ireland, by the company Waterford Wedgwood plc., previously trading as Waterford Glass Ltd.  flutes, many consumers are demanding such novelty items.

Culver City-based Ames women's evening wear stores are selling millennium belts handset with Swarofsky crystal for $356 each.

"Evening wear is hot this year. Everyone wants to dress for this particular New Year and even those who are planning to stay at home want to dress up," said Ames President David Oliver.
COPYRIGHT 1999 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Author:Garcia, Shelly
Publication:Los Angeles Business Journal
Article Type:Industry Overview
Geographic Code:1USA
Date:Nov 1, 1999
Words:1146
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