Levin Management Pre-Holiday Retail Survey Shows Some Optimism for 2011 Holiday Season

Nov. 22, 2011 - PRLog -- Following 2010 - a year in which holiday sales fell and the economy continued its recessionary trends - retailers in 2011 are generally optimistic about the current holiday shopping season. According to the second annual pre-holiday survey conducted by Levin Management Corporation, more than a third of retailers predict 2011 sales will be higher than 2010's, while just 18.9% project a drop in sales for the 2011 holiday season. The remaining 44.2% expect this year's holiday sales to mirror last year's.

The Levin survey, conducted in October and November, explored a number of anticipated trends and comparisons this year among tenants based at its 12.5 million-square-foot retail portfolio in New Jersey, Pennsylvania, New York and throughout the northeast. Some of the findings indicate retailers will continue to offer markdowns to meet demand; inventories are holding steady, and a little more than half said they expect shoppers to spend at a higher rate during the holiday season.

"Although nearly 62% of responders in a 2010 post-holiday survey by Levin reported that 2010 holiday sales actually were lower or the same as 2009, the attitude among retailers in 2011 still is positive," said Matthew K. Harding, president and chief operating officer of Levin Management Corporation.

As a catalyst for consumer spending, promotional sale markdowns will match 2010 according to 73% of survey responders. Only 17.9% expect markdowns to be higher, while roughly half that number, 9.2% anticipate lower markdowns.

Have economic conditions led to more value-oriented merchandise for the 2011 holiday season? Fully 60% of retailers who responded said "yes."

The survey included a question about whether shoppers would ignore economic conditions and increase their holiday spending for 2011. The responses were nearly equally split: 51% said "yes," and 49% indicated "no." Meanwhile, in terms of inventory, 80% said their orders were the same or higher than the previous holiday season.

"While the reality shows challenges, retailers express guarded optimism about the upcoming holiday season," said Harding. "Clearly, they are addressing economic conditions as part of their holiday strategies, combining an emphasis on value-oriented merchandise with higher inventory levels to meet anticipated demand."

Fewer Seasonal Jobs Expected

When it comes to jobs, only 30% of retailers who responded to the 2011 survey indicated they will be adding seasonal employees. In the 2010 post-holiday survey, 40% of retailers had added positions for the holiday season, suggesting that economic conditions continue to weaken job growth in the market.

This year, just 28.4% said their 2011 year-to-date sales were up compared with 2010; 27.4% reported the same level, and 44.1% indicated lower sales. At the corporate level, 36% of those surveyed indicated their companies would be adding stores in 2012, an improvement over the last survey when just 25% of responders said their companies would be adding stores.

How are stores performing in this region compared to company stores elsewhere in the country? The store-by-store results apparently do not differ significantly from region to region, with more than 58% indicating their sales were the same as company stores elsewhere, and the remaining 42% almost evenly divided between "lower" and "higher."

PHOTO CAPTION: Shoppers filled the lot of Paramus Place on Route 4 in Paramus in the weeks leading up to Thanksgiving. Levin Management Corporation is the exclusive leasing and managing agent for the property. According to the second annual pre-holiday survey conducted by Levin, more than a third of retailers predict 2011 sales will be higher than 2010's, while just 18.9% project a drop in sales for the 2011 holiday season. The remaining 44.2% expect this year's holiday sales to mirror last year's.

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About Levin Management: Founded in 1952, Levin Management Corporation is one of the nation's leading retail real estate services firms, offering management, leasing and many other services to clients throughout the northeastern United States. Founded by a pioneering real estate developer, Levin Management takes an owner's approach to the business. The company's management and leasing portfolio consists of more than 90 diverse retail properties totaling 12.5 million square feet. Properties range from downtown stores to lifestyle centers, and from neighborhood and community centers to power centers, in New Jersey, New York, Pennsylvania, Virginia, North Carolina and Florida. Other services include accounting, construction management, marketing and risk management. The company has been recognized for repositioning, retenanting and renovating retail properties, services that have become particularly vital for today's institutional, fiduciary and individual retail property owners.