Let The Shopping Begin!

Shoppers everywhere braved the early hours in search of a bargain Friday, as retailers inaugurated the holiday shopping season with the usual gimmicks, including early bird specials.

It's make-or-break time for stores all over America, who are counting on shoppers to boost sales and profits before the end of the year.

CBS News Correspondent Randall Pinkston reports retailers hope for a 5 to 7 percent increase over sales last year, but some analysts say 3 to 4 percent is more realistic. Toys and electronics are expected to be the season's sales leaders, with apparel and accessories doing OK.

About 100 people waited in line outside the KB Toy store in King of Prussia mall near Philadelphia about 5:15 a.m.. Edna Daniels, 65, worried her toy would be gone and wished she had been quicker.

"I wish that I had gotten up early. I would have been here at 4 o'clock; I would have been second in line," she said, hoping to take advantage of a special on the Game Boy Advance for her grandsons, ages 9 and 12. "By this time, I doubt they have them."

Outside a Wal-Mart store in Burlington Township, N.J., Erika Johnson said she was shocked by the line of people that wrapped around the block at 5:30 a.m.

"I couldn't believe it," Johnson said. "I never did this before and I think it may be the last time."

Johnson said she was looking for a CD-DVD combination player that was on sale for $29. She also hoped to get a Hummer remote control car for her daughter, which was going for $20 — about half its regular price.

This year, stores are hoping to boost revenues by keeping inventories tight – about 7 percent below last year's levels -- and offering fewer discounts. With an improving economy, merchants are more hopeful that consumers will keep buying throughout the season, not only when the merchandise is 50 percent off.

"It's not going to be easy. Stores have conditioned consumers to buy on sale," said Burt Flickinger, managing partner at the consulting firm Strategic Resource Group in New York.

Stores should benefit from a quirk in the calendar — the holiday season has 27 shopping days, instead of last year's 26.

Still, while many retailers believe the holiday 2003 season will be better than last year, the question is by how much. The economy is on the rebound, but the job market, though improving, is still sluggish.

Meanwhile, online holiday sales are expected to remain a bright spot.

Forrester Research estimated that online sales from Thanksgiving weekend to Christmas will increase 42 percent over a year ago to $12.2 billion. The results include travel and auction sites.

While the Thanksgiving weekend starts the shopping spree, it no longer is the busiest period of the season. Last year, the weekend accounted for 10.1 percent of holiday sales.

The busiest period — which is becoming increasingly important — is the last week before Christmas, which accounted for 41 percent a year ago. That's up from 34 percent in 2001 and 30.9 percent in 2000, according to the International Council of Shopping Centers.

The weekend's business, however, is hardly a barometer of how the rest of the season will fare. Last year, stores enjoyed a strong Thanksgiving weekend, but sales quickly deteriorated.