BOO! SANTA CLAUS IS COMING TO TOWN

MUNCIE, Ind. -- The scariest part of Halloween is finding Christmas decorations on department store shelves, says a Ball State University retail analyst.

Retailers are constantly expanding the holiday shopping season to tap into an increasingly competitive market place. Santa Claus, elves, decorated trees and other Christmas-related merchandise pop up as early as September, says James Lowry, a marketing professor.

"For several years we've seen that Christmas displays and goods are available at retailers prior to Halloween and aggressively promoted right after Oct. 31," Lowry said. "For some people, it is very frightening to see Santa Claus that early. They don't even want to think about winter in September."

On the other hand, consumers do make a large number of their purchases on impulse. Retailers know that when consumers see something they want -- whether it is in September or December -- they are prone to make that purchase, he said.

Lowry points out that since Christmas holidays account for 30 to 50 percent of sales for most retailers, an early start to the shopping season allows retailers to stretch out the shopping period and make it more manageable.

Competition among large retail chains also has become more intensive and stores are more aggressive in promotions. Retailers are attempting to get a head start on their counterparts by rolling out the merchandise a week or two earlier each year.

To help spread out the Christmas holiday season, many retailers have adopted a quick response inventory policy. The system eliminates large inventories of goods in an outlet and forces store management to put items immediately on sale after delivery.

"Many retailers use foreign suppliers who take orders months ahead of the actual holiday," Lowry said. "Once the goods arrive, they go directly to the floor. This also eliminates any wasted space, which costs money."

- 30 - (NOTE TO EDITORS: For more information, contact Lowry by E-mail at [email protected] or by phone at (765) 285-5180. For more stories visit the Ball State University News Center at http://newscenter.bsu.edu on the World Wide Web.) Marc Ransford 10-20-98