The Christmas holiday season — also known as crunch time for retailers — may have already arrived.

Wal-Mart Stores just put out more than 100 toys at $10 each, specially priced for holiday shopping.

Others are starting to roll out promotions, marketing campaigns and strategies to lure customers.

Along with the toy markdowns, retail chains are doing everything from offering Christmas shopping savings cards to opening temporary stores during the holiday season.

They’ll be reaching out to some budget-minded shoppers.

“Consumers right now are very cautious — even people who haven’t been affected by the downturn,” said Lewis Paine, vice president, retail & consumer sector, at GfK, a global market research firm based in New York City.

Consumers have decided to be much smarter and more efficient about their shopping and are educating themselves more before making purchases, he said. And they are more willing to shop multiple outlets to find the best values.

Because consumers have so many options, retailers are coming up with promotions to both draw people in their stores and, once they are inside, “convince them to buy then and there,” Paine said.

For example, he said, the store might broadcast over its speakers a previously unannounced deal offering immediate credit.

Many retailers will also be doing more “bundling” this season — packaging related goods to generate higher-dollar purchases, Paine said.

Part of Toys R Us’ strategy this year is to dramatically increase its presence. The retailer plans to open more than 300 temporary Toys R Us Holiday Express shops throughout the U.S. beginning this month. More than 80 of those temporary shops will be inside existing Babies R Us stores.

In the Houston area, the Galleria will get a Holiday Express shop, company spokeswoman Katie Reczek said.

Toys R Us may open more temporary stores in the Houston area, and is currently negotiating leases, Reczek said.

Wal-Mart is expanding on its $10 toy section promotion from last year, offering more than 100 toys for that price this season. This promotion was launched last week. Discounted toys include LEGO Bionicle Legends set, My Little Pony So Soft Newborn, Barbie Cut and Style Rapunzel and Tonka Light and Sound assortment.

‘Dashing designer deals’

This holiday season Target will promote “dashing designer deals” from Carlos Falchi and other fashion designers, home decor by Marcel Wanders, and beauty items from Jemma Kidd and others. The Target 2009 holiday collection products are priced at $25 and less.

Retailers are better prepared for the 2009 holiday season compared to last year’s, said Ellen Davis, a spokeswoman for the National Retail Federation.

Last year’s economic meltdown was unexpected and many retailers found themselves with too many employees, too much inventory and “marketing messages that weren’t resonating with consumers,” she said.

Consumers will be focused on necessities and basics when holiday shopping this year, she said.

Focusing on the thrifty

Some retailers are launching promotions aimed at consumers who are being careful with their spending.

Later this month, Stage Stores, which operates in Houston as Palais Royal, will launch its Christmas Cash Club program. Using cash, check or a debit card, customers can put money into the card to be saved for holiday spending. For every $100 they put in the card, they get a $10 bonus.

The Christmas Cash Club card is “similar to the Christmas accounts our grandmas had back in the day,” and allows customers to stretch their dollars during the holidays while earning a little bonus money, Stage Store spokeswoman Kim Bell said.

As it has done in past years, Houston-based Stage Stores will also offer a plush toy promotion. When Palais Royal customers spend $50 or more, they qualify to buy either a stuffed bear or dog for $6.

In pursuit of loyalty

Palais Royal’s savings card is “a play for consumer loyalty,” Paine said. Consumers have become less loyal in recent years because they have so many options, he noted.

Best Buy announced last week that it will hire more employees this holiday season to meet the demand for Internet-connected flat-screen TVs and mobile phones.

The electronics retailer is emphasizing its advice and installation services as a way of setting it apart from competitors such as Wal-Mart and Amazon, a company official said Wednesday, Bloomberg News reported.

1% gain expected

Michael Niemira, chief economist for the International Council of Shopping Centers, expects to see a modest 1 percent gain for U.S. retailers this holiday season.

One reason for the expected gain is “arithmetic alone,” he said, noting that last year’s holiday season was dismal.

He suggested other factors: Store closings will result in improved business for existing stores, retailers will have more appropriately sized inventories this season, and the economy is improving.

This will be the first non-recession holiday in three years, Niemira noted.

“It’s definitely going to be a good time for consumers to buy,” Paine said. “With consumer loyalty down and consumers smarter, retailers are going to bend over backwards” to make them want to buy, he added.

[Thanks: http://www.chron.com]