Business News : Stores see busy, but not bang-up Christmas eve

NEW YORK/LAS VEGAS (Business News) - Retailers saw their fair share of last-minute shoppers on Saturday, the day before Christmas, but stores were not super-busy, putting a moderate cap on pre-holiday season that started with a bang and has waned ever since.

Industry watchers are forecasting a stronger holiday shopping season than expected, as deep discounts at the start of the season prompted a flurry of purchasing and unusually warm and dry weather has made it easier for people to shop.

But on the last shopping day before Christmas, the scene at several malls in different parts of the country was busy, but neither shoppers, nor retailers seemed overwhelmed.

"The last-minute Charlies have come out," said Marshal Cohen, chief industry analyst at the NPD Group. "Stores are busy, but not bustling."

The fact that Christmas Eve falls on a Saturday is good for retailers like Wal-Mart Stores (WMT.N), Best Buy (BBY.N) and Gap Inc (GPS.N). So is the fact that the day after Christmas is a Monday, instead of a Sunday like last year, when many people stayed home and watched American football, said Ramesh Swamy, an analyst in Deloitte's retail practice.

"The calendar is working in our favor," Swamy said.

Saturday caps a key week in the retail calendar that saw a handful of major store chains staying open around the clock to cater to consumers' late-night shopping craves, from Toys R Us Inc to Macy's, a decision hailed by shoppers and industry watchers alike.

And Saturday brought some discounts, such as one from children's clothing chain Gymboree on Saturday, which was offering all its merchandise, in stores and online, for $ 15.99 or less.

One shopper, who only wanted to be identified as 67-year-old Bill V., was finishing up his holiday shopping at a Las Vegas-area Macy's Inc (M.N) store on early Saturday morning.

Armed with several bags filled with gifts for his wife, daughter and grandson, he said the deals were not much to write home about.

"They were OK. They could have been better," he said.

The store was offering 50 percent to 60 percent off women's winter coats, 60 percent off sweaters, 50 percent off slippers and fuzzy socks and 40 percent to 70 percent off purses.

The weak economy has put a damper on consumer confidence, but shoppers' resilience has surprised the industry.

"There are still a lot of issues out there, including uncertainty in the economy," Swamy said. "But for whatever reason it didn't dampen people's holiday spirit.

Experts say the warm, dry weather in much of the country has helped, as has the lack of blizzard like last year, which dampened shopping in the days after Christmas.

The National Retail Federation raised its forecast for holiday retail sales, now expecting a 3.8 percent increase, up from an October forecast for a 2.8 percent increase.

And ShopperTrak, which monitors traffic at shopping malls, now expects sales in November and December to rise 3.7 percent, up from its September forecast of 3 percent.