Retailers in the spirit again

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BY SETARREH MASSIHZADEGAN AND JOCELYN BLACK
Medill News Service | Thursday, November 16, 2006 | (No comments posted.)

It's beginning to look a lot like Christmas at many retailers in the Chicago area.

Stores are increasingly using "Christmas" in their holiday campaigns, a change retailers said is in response to consumer demand.

Wal-Mart Stores Inc. announced last week that it will bring Christmas back into stores as part of its "Be Bright" advertising and marketing theme. Other retailers, such as Macy's and Carson Pirie Scott, have taken a similar approach.

Macy's "overall holiday theme is about being the gift destination for our customers," said spokeswoman Jennifer McNamara. "But 'Merry Christmas' will be a prominent theme in our campaign and print advertising" as well as online, she added. The retailer will also feature gift cards with Christmas, Hanukkah and Kwanzaa messages, all new this year.

"The bottom line is that we're not afraid to say 'Merry Christmas,'" McNamara added. The move is part of Macy's philosophy and strategy to serve customer demands, she said.

"They may have done marketing analysis and identified that their core shoppers want to hear Merry Christmas," said Jennifer Escalas, associate professor of marketing at Vanderbilt Owen Graduate School of Management. "If their most profitable and loyal customers appreciate that, then yes, they will shop more frequently and spend more money."

Macy's employees are encouraged to wish customers Merry Christmas, Feliz Navidad, Happy Hanukkah or Happy Kwanzaa as they deem appropriate, McNamara said, an initiative shared by Wal-Mart.

However, "This year, more than ever, our shoppers will see and hear more about Christmas and the incredible values Wal-Mart is providing for their holiday shopping needs," said John Fleming, executive vice president of marketing at Bentonville, Ark.-based Wal-Mart.

The retailer's new holiday commercial includes a nativity scene with a voiceover saying, "Wal-Mart invites you to let your light shine this Christmas season."

Wal-Mart is carrying 60 percent more "Christmas" labeled merchandise that was previously labeled "holiday," than last year.

Target Brands Inc. has been running commercials with "Merry Christmas" messages at the end and Carson Pirie Scott's State Street store features window decals with the slogan, "Classic Carson's Classic Christmas." Neither retailer could not be reached for comment.

Snowflakes and "Happy Holidays" messages abounded in other State Street store windows. Sears Holding Corp.'s Lands' End store greeted customers with a life-sized Santa Claus cardboard cutout upon entry, and signs inside advertised the retailer's holiday Web site, www.readysetholiday.com, which opens with presents and gold letters spelling "XMAS" below a Christmas tree. Sears could not be reached for comment.

Escalas said consumer response will dictate whether the trend continues.

"If sales go up then I think other companies will follow suit," she said. "If it hurts the sales, I think it will go back to 'Happy Holidays.' If they wobble back and forth that could cause problems, but it is driven by the bottom line."

The Washington, D.C.-based National Retail Federation forecasted holiday sales nationwide will increase 5 percent this year to $457.4 billion.

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