Black Friday: Americans shop like there is no tomorrow

Discussion in 'Economics' started by Pekelo, Nov 30, 2008.

  1. Pekelo


    "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.

    Across the country, sales in the South were up 3.4 percent from last year while they 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, some as much as 70 percent off. Elsewhere, sales rose 3 percent in the Midwest and 2.7 percent in the West."
  2. bgp


    hello pekelo,
    too bad the retailor lost money on the sales friday and as far as the consumer goes they will spend their last penney. we have a zero savings rate. its all up hill till christmas.

  3. Retailers are slashing excessive inventory, hardly positive.
  4. I spent quite a bit of money, the discounts were awesome!
  5. bgp


    i'm waiting a week or two yet. their is no rush to buy goods, the sales will continue.
  6. 3% more depressed people. Depressed people spend, shop more.
  7. Pekelo


    Movies made big money too:

    "The top ten films grossed $154M - the best tally for the turkey holiday in eight years, up 10% from last year's Thanksgiving frame.."
  8. I disagree.
    That's actually part of a very bullish economic process that will create demand for increases in inventory in the future.
  9. Very interesting number. The rise is roughly in the noise, but even acknowledging that, it is going to be a surprise to many that the number isn't less than zero.
  10. If the savings rate is zero, the "last penny" is long gone, which should be a clue that they are spending someone else's pennies. Until that supply runs out, party on, Garth!
    #10     Nov 30, 2008