Expert: Watch for big sales this holiday season

Expect sale prices and unprecedented promotions as retailers seek to boost profits through Christmas, a retail expert said Tuesday.

Some businesses have already reported a spike in sales as a result of declining gas prices. It may prove challenging to keep those registers ringing during what's been widely projected to be a dismal holiday shopping season.

"How do retailers respond to that? With lower prices, with more promotions," said Ted Potrikus, of the Retail Council of New York State. "If you think you've seen promotional Christmases in the past, get ready."

At the Silver Parrot, a clothing and jewelry boutique in Stuyvessant Plaza, owner Clinton Hegeman is guardedly hopeful.

"I'm trying not to be too optimistic," Hegemen said. "I think that would be foolish in this environment."

Hegemen said his sales dropped by about eight percent when gas prices reached their zenith in the summer. Sales have rebounded by more than eight percent since prices at the pump started coming down.

"It seemed like the world was caving in," he said. "Then gas went down and our business got a little better."

Shoppers like Ann Lowe, of Old Chatham, said the lower prices encourage her to shop -- and spend -- more.

"I filled-up [my gas tank] today for $38 versus $50," Lowe said. "It makes a big difference."

Potrikus, of the Retail Council, said the actual savings account for 25% of the spike in retail sales. He attributes the remaining 75% to the psychological effect of seeing a two before the decimal point on gas station marquees. The current local average is $2.45 per gallon.

Psyche will play a similar role during the holiday shopping season, Potrikus said.

"You know, a nice snowy day on the day after Thanksgiving -- not a lot of snow on the roads, but some in the sky and some on the ground," he said, "add a little Bing Crosby into it and you feel like Christmas shopping."