Shoppers who liked the deals before Christmas can expect even more discounts over the next two weeks as retailers struggle to clear inventories before new merchandise arrives in January, local retail analysts believe.

Consultant Stephany Sofos expects the discounting to continue this week because retailers need to clear out this year's merchandise now rapidly turning into last year's leftover product.

“;The reality is, merchandise needs to be turned,”; said Carol Pregill, president of the Retail Merchants of Hawaii.

In the old days, Pregill said, retailers had large central distribution centers where merchandise could be returned, sorted and then brought out for later sales.

Now most goods go directly to the stores.

“;It (merchandise) has nowhere else to go except out the door,”; she said.

Sofos said on the day after Christmas, she saw items being sold at a 90 percent discount.

After-Christmas clearance sales are typical in retail.

“;Retailers have already purchased '09 models, and they need to clear the inventory,”; Sofos said. “;They have to discount because they gotta move their product.”;

But she thinks discounts will be greater this year than previous years.

“;People haven't been spending,”; she said. “;This year was a real sobering year for the retailers because consumers were very careful. ... A lot of people were more concerned about pricing than convenience.”;

Sofos expects consumers here to respond to the discounting.

Sales of gift cards, which generally help sales in January and February, are down this year. But Sofos thinks in Hawaii many people received cash, which she believes will be spent in stores.

Retailers order inventory six to nine months in advance. Pregill believes orders for the first half of next year are lower than last year in recognition of the slowing economy.

Some retailers have gotten better at inventory control, Sofos said, which means they might not have to discount as much. Other items, like the Nintendo Wii, are so much in demand that they will not go on sale.

There could be some good news for retailers next year, Sofos believes.

“;I think we've seen the worst already,”; she said, adding that she believes consumer confidence and spending will increase, perhaps by midyear, after the Obama administration takes office.

“;You should start to see a turnaround,”; she said. “;That's my prediction.”;