Deep Discounts Boost Black Friday Sales
The holiday shopping season got off to a surprisingly solid start, according to data released Saturday by a research firm. But the sales boost during the post-Thanksgiving shopathon came at the expense of profits as the nation's retailers had to slash prices to attract the crowds in a season that is expected to be the weakest in decades.
Sales during the day after Thanksgiving rose 3 percent to $10.6 billion, according to preliminary figures released Saturday by ShopperTrak RCT Corp., a Chicago-based research firm that tracks sales at more than 50,000 retail outlets. Last year, shoppers spent about $10.3 billion on the day after Thanksgiving, dubbed Black Friday because it was historically the sales-packed day when retailers would become profitable for the year.
But this year, many observers were expecting consumers to spend more time browsing than buying, amid contractions in consumer spending and growing fears about economic uncertainty and trouble in the global financial markets.
"Under these circumstances, it's truly amazing when you think about all the news that led into the holiday season, it certainly appears that consumers are willing to spend more than most expected," said ShopperTrak co-founder Bill Martin. "Everybody wants value for their dollar, so we saw a tremendous response to the discounts."
While it isn't a predictor of overall holiday season sales, Black Friday is an important barometer of people's willingness to spend during the holidays. Last year, it was the biggest sales generator of the season while the Thanksgiving shopping weekend of Friday through Sunday accounted for about 10 percent of overall holiday sales.
Still, experts, who predict this year's overall holiday shopping period will be the weakest in decades thanks to an overall contraction in spending, caution that this year's sales growth may be hard to sustain.
Also complicating matters is a shorter buying season — 27 days between Black Friday and Christmas — instead of 32 last year.
Sales in the South were up 3.4 percent from last year, while sales climbed 2.6 percent in the Northeast as shoppers began scouring store aisles at midnight hoping to snag the best selection on early morning specials.
Shoppers' zeal for snagging Black Friday bargains turned tragic in Long Island, N.Y., where a Wal-Mart worker died after being trampled in a stampede of shoppers that broke down the store's front doors. Shoppers were injured in several other incidents around the country.
Patty Saal, 60, of Mogadore, Ohio, began her Black Friday shopping at 5 a.m. when she and her daughters went to a Sam's Club to purchase iPods.
"We're doing fine," she said.
Fifth-grade teacher Daphna Stepen, 42, spent Black Friday hunting for deals inside Macy's and at the Limited Too clothing store and headed out again Saturday. The Chicago resident said she was surprised by the discounts as well as how many coupons she'd received from stores, which helped her save even more money on already marked-down items.
"You can get almost 40 percent off stuff if you work the coupons," she said.
Separately on Saturday, J.C. Penney Co. Inc. said business was strong in its sites across the country as customers responded to sales. Some of the department store's best sellers were smaller electronic gadgets and practical gifts, such as sweaters, boots, coats and luggage.
But the chain said it wouldn't provide specific sales figures.
"In light of the challenging and volatile economic climate, and shifts in this year's retail calendar, we don't believe that reporting sales data for any one day (or weekend), including Black Friday, would provide a meaningful barometer of our business," the Plano, Texas company said in a statement released Saturday afternoon.
© 2009 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report. Sales during the day after Thanksgiving rose 3 percent to $10.6 billion, according to preliminary figures released Saturday by ShopperTrak RCT Corp., a Chicago-based research firm that tracks sales at more than 50,000 retail outlets. Last year, shoppers spent about $10.3 billion on the day after Thanksgiving, dubbed Black Friday because it was historically the sales-packed day when retailers would become profitable for the year.
But this year, many observers were expecting consumers to spend more time browsing than buying, amid contractions in consumer spending and growing fears about economic uncertainty and trouble in the global financial markets.
"Under these circumstances, it's truly amazing when you think about all the news that led into the holiday season, it certainly appears that consumers are willing to spend more than most expected," said ShopperTrak co-founder Bill Martin. "Everybody wants value for their dollar, so we saw a tremendous response to the discounts."
While it isn't a predictor of overall holiday season sales, Black Friday is an important barometer of people's willingness to spend during the holidays. Last year, it was the biggest sales generator of the season while the Thanksgiving shopping weekend of Friday through Sunday accounted for about 10 percent of overall holiday sales.
Still, experts, who predict this year's overall holiday shopping period will be the weakest in decades thanks to an overall contraction in spending, caution that this year's sales growth may be hard to sustain.
Also complicating matters is a shorter buying season — 27 days between Black Friday and Christmas — instead of 32 last year.
Sales in the South were up 3.4 percent from last year, while sales climbed 2.6 percent in the Northeast as shoppers began scouring store aisles at midnight hoping to snag the best selection on early morning specials.
Shoppers' zeal for snagging Black Friday bargains turned tragic in Long Island, N.Y., where a Wal-Mart worker died after being trampled in a stampede of shoppers that broke down the store's front doors. Shoppers were injured in several other incidents around the country.
Patty Saal, 60, of Mogadore, Ohio, began her Black Friday shopping at 5 a.m. when she and her daughters went to a Sam's Club to purchase iPods.
"We're doing fine," she said.
Fifth-grade teacher Daphna Stepen, 42, spent Black Friday hunting for deals inside Macy's and at the Limited Too clothing store and headed out again Saturday. The Chicago resident said she was surprised by the discounts as well as how many coupons she'd received from stores, which helped her save even more money on already marked-down items.
"You can get almost 40 percent off stuff if you work the coupons," she said.
Separately on Saturday, J.C. Penney Co. Inc. said business was strong in its sites across the country as customers responded to sales. Some of the department store's best sellers were smaller electronic gadgets and practical gifts, such as sweaters, boots, coats and luggage.
But the chain said it wouldn't provide specific sales figures.
"In light of the challenging and volatile economic climate, and shifts in this year's retail calendar, we don't believe that reporting sales data for any one day (or weekend), including Black Friday, would provide a meaningful barometer of our business," the Plano, Texas company said in a statement released Saturday afternoon.
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Posted by trillion1 at 10:37 AM : Nov 30, 2008
________________
If sales keep up, more retail jobs will be available. The people who lost their homes will simply rent something they can afford...Like I did when I was injured and had to be unemployable for 3 years.
The Great Emperor was unmoved upon learning that 3 deaths had been associated with Black Friday, especially the one death of a Wal-Mart employee trampled to death by a herd of berserk shoppers, all intent on spending money!
All that matters to the Great Emperor is that Corporate America has had a profitable day and that the average consumer is digging themselves deeper into debt, just like the country is!!!
SIG HEIL, IT''S ONLY MONEY!!!, BUSH!!!
If you owe credit card debt from last month that you did not pay off - don''t buy Christmas gifts.
You can''t afford them.
During the depression my mother got an orange for Christmas.
If people want to give you gifts, ask for gift cards and buy necessities.
We''ll all be fine but not if we keep doing what we have been doing.
If you need to celebrate Christmas, go to church.
Posted by Hypnotoad72
You can save a lot buying on line, not only check out reviews from other owners, but get the best prices and shipping deals, some places to look at include cnet.com for reviews, prices and more, onsale.com pczone.com maczone.com wolfcamera.com and others.
Monitors, I''ve had great luck with Viewsonic
Posted by ghostfighter "
Where ever u learned statistics it was wrong, 3% growth in sales doesnt mean a thing if the sales are due to HEAVY DISCOUNTS- heavier than last year because the PROFIT is what counts not the number of sales. Sell 100 items today @ $5 ea that you paid WS $3 for thats $200 profit, discount the price to $3.50 ea and sell 200 items as a result- you made only $100 profit but had to move twice as many goods to do it, but hey, you increased your sales by double!
Also, 3% is nothing, the US population growth increases that much and more every year, that fact alone can account for the 3%
Again growth in ''consumer-spending'' (debt-growth) is not real growth.
The ''real-economy'' has been shrinking or contracting for decades.
How else can you explain that back in the 70''s GDP was only 40% ''consumer-spending'' (debt-growth) and now it''s 72% today?
I seriously doubt that retailers will have a great ''holiday season'' anyways because I went out to the mall and it was a normal crowd with less traffic and no problem parking my car.
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Posted by tootall1014 at 08:14 AM : Nov 30, 2008
Hey Buddy, GET A GRIP! Yes, Mal-Wart is selling overseas products. But they do it CHEAPLY! In this economy, I bet Paris Hilton could start shopping there. People need to save money and the only way they''re going to do it is if they purchase cheap products. I agree with you that Mal-Wart sucks, but people aren''t going to stop working there just because you tell them too. Turn the caps off too, I don''t like to get yelled at while I''m reading. Thanks!