Retailers Hope For Record-Setting Season

Nov. 21 - KGO (KGO) -- This could be a record-setting shopping season by the time the holidays are done. The Retail Federation expects the average shopper to spend nearly $800 dollars on gifts this season. That's $53 dollars more than last year.

There are 137 million people expected to start their shopping this coming weekend. We all know that Friday, the day after Thanksgiving, is the traditional start of the holiday shopping season. However, the rush is already underway at San Francisco's Union Square and throughout the Bay Area.

Retailers have a lot going for them this year. Consumers are already out spending their money, getting a jump start on their holiday shopping.

Kit Yarrow, Ph.D., consumer psychologist: "People are very excited about the holidays this year. They got on the bandwagon really early, started shopping in October, September this year. And they've been shopping ever since."

Union Square merchants have noticed that city-owned parking lots are filling up earlier than last year.

Early shopping is a good sign for retailers. It means they're ready to buy now. They're not waiting for late-season sales.

Shoppers have more stores competing for their dollars with the opening of the new Bloomingdale's and the expansion of the San Francisco Shopping Centre.

Kit Yarrow: "So they're going to be shopping, I think, judiciously, intelligently, all throughout the season, but in the end, I think they're going to be spending a lot of money."

Online shopping is also expected to be big this year, ringing up a projected $30 billion dollars in sales.

San Mateo based comparison shopping service Dealio believes people will go online after they've been to the mall.

Rodrigo Sales, Dealio Chief Executive Officer: "Well, I think what people find is that after spending the weekend or a couple of days at the mall, dealing with the crowds, they may pick up a few of their items they're looking for, but you have a much better selection available online."

Some retailers will find the holiday season a big challenge. Old Navy -- a division of San Francisco based The Gap -- is one example. Old Navy has suffered from competition from Target and other discounters. Sales have fallen three months in a row.

As the shopping days run out, retailers see gift card sales rise as the perfect, last-minute purchase.

You know who else will be joining you during the holiday shopping season? Shoplifters and in-house thieves who are expected to steal $37.5 billion dollars worth of merchandise.

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