Holiday Sales Drop at Least 5.5%

A better indicator of how retailers fared will arrive Jan. 8, when major stores report same-store sales, or sales at locations open at least a year, for December.

Analysts have kept slashing their holiday estimates. Michael P. Niemira, chief economist at the International Council of Shopping Centers, expects that sales at established stores for November and December will fall 1.5% to 2% -- which would make it the weakest holiday season since at least 1969, when the index began.

With sales looking slim, retailers are hoping the day after Christmas this year will be reminiscent of another big shopping day.

"It has a Black Friday feel to it," said Tom Aiello, a spokesman for Sears and Kmart, units of Sears Holdings(SHLD Quote), likening the post-Christmas promotions to those found the day after Thanksgiving when retailers historically began to turn a profit for the year.

Sears stores were opening several hours early at 7 a.m. and offering door buster deals through noon, such as 60% off fleece or knit tops and 65% off all women's boots.

Kmart is cutting in half prices on necessities, such as fall and winter clothes for the family, and offering deals on seasonal decor.

Toys R Us said it is cutting prices by 60% on some brands the day after Christmas.

Other retailers such as Target(TGT Quote) are pushing online deals, rather than in-store promotions, more heavily in the post-holiday period. Target said it is putting thousands of items on clearance and making them eligible for free shipping the day after Christmas.