Black Friday Sales Up Seven Percent Over 2010

Black Friday Shopping

The holiday shopping season got off to a strong start on Black Friday, with retail sales up 7 percent over last year, according to the most recent survey. Now stores just have to keep buyers coming back without the promise of door-buster savings.

Buyers spent $11.4 billion at retail stores and malls, up nearly $1 billion from last year, according to a Saturday report from ShopperTrak. It was the largest amount ever spent on the day that marks the beginning of the holiday shopping season, and the biggest year-over-year increase since 2007. Chicago-based ShopperTrak gathers data from 25,000 outlets across the U.S., including individual stores and shopping centers.

The Mall of America in Bloomington, Minn. broke its Black Friday record for shoppers, thanks to a decision to open at midnight for the first time. Around 210,000 visitors came to the mall on Friday, up from 200,000 last year, according to mall spokeswoman Bridget Jewell.

Online shopping was strong as well, with a 24.3 percent increase in online spending on Black Friday, according to IBM, which tracks sales at 500 online retailers.

Bill Martin, who founded ShopperTrak, said he was surprised by the strong showing. He had expected the weak economy to dent consumer confidence and keep more shoppers out of the stores, or at least from spending much. Instead, he said, they responded to a blanket of promotions, from 60- and 70-percent off deals to door-buster savings on electronics.

"I'm pleased to see it. You can't have a great season without having a good Black Friday," Martin told The Associated Press in an interview.

Sales were also up 4 percent each in the two weeks leading up to Black Friday, as retailers started their promotions earlier than usual or extended their hours.

Still, he suspects things will quiet down this weekend, as promotions end and the buying frenzy subsides. ShopperTrak is expecting holiday sales to be up 3.3 percent this season. Retailers generally rely on sales between Thanksgiving and Christmas to make up 20 percent of their annual take.

There weren't many shoppers at Pioneer Place Mall in Portland, Ore., on Saturday.

"This is great, I'm glad I waited," said MaryJane Danan, who drove two hours from Corvallis, Ore., to go shopping with her teenage daughters. She stayed home on Black Friday because she thought the crowds would be huge. But she was surprised by how few people were out Saturday.

At Crabtree Valley Mall in Raleigh, N.C., Mary Aker was forced to use valet parking Friday because she couldn't find a parking spot. But on Saturday, the pace had let up a little, so she and her husband came back to do some more shopping.

Aker, 58, a retired librarian, said she's spending about as much as she usually does for Christmas. But she's asking people what they want ahead of time to make sure everyone is happy.

At the same mall, sisters Patricia Harrington, Betty Thomas and Laverne Kelly had been shopping all weekend, starting with an all-nighter Thursday after Thanksgiving dinner. The sisters said things calmed down considerably by Friday and Saturday. They suspected a lot of people were shopping online, but they were also underwhelmed by the discounts.

"People are losing their jobs. They should have better deals," said Kelly, 50 and a customer service agent at FedEx.

"There are a lot of people out here but fewer bags," added Thomas, 52 and a health coordinator at a Raleigh hospital.

Thanksgiving weekend, particularly Black Friday, is huge for retailers. Over the past six years, Black Friday was the biggest sales day of the year, and it is expected to keep that crown this year, though shoppers seem to be procrastinating more every year and the fate of the holiday season is increasingly coming down to the last few days before Christmas.

Last year, the Thanksgiving shopping weekend accounted for 12.1 percent of overall holiday sales. Black Friday made up about half of that.

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Thanksgiving kicks off fight for holiday sales

Holiday Shopping

(Reuters) - The holiday shopping season is in full swing on Thursday, with retailers hoping consumers will spend big despite worries about the fragile economy and their own precarious finances.

The shopping period has been underway for some time as retailers such as Wal-Mart Stores Inc and Toys R Us started early by offering layaway programs.

But shoppers are looking for major bargains and retail executives are predicting a more competitive season than 2010.

An Old Navy store in Watchung, New Jersey, was teeming with shoppers on Thursday morning, while a line outside a Best Buy in Union, N.J., included shoppers who had pitched a tent to stay warm until the store's midnight opening, according to Charles O'Shea, a Moody's senior retail analyst.

O'Shea said he was visiting various retailers to gauge consumer traffic. The big draws are deals, like t-shirts for $6, down from $12. Bargains like those will be a fixture for the season, he said.

"There is no question that the shopper is looking for deals," O'Shea said. "Nobody wants to feel like they're leaving money on the table, especially when they have less money now."

Millions of U.S. people will head out to shop once they are done with their turkey dinners, getting a jump-start on "Black Friday" - the single biggest shopping day of the year, which sets the tone for the entire season.

Still, many others will be watching their pennies.

Paula Taero, a 58 year-old housekeeper from Queens, New York who was shopping on Thursday at a Kmart in Manhattan, said she is cutting back this year on her Christmas shopping.

"Santa will buy for others. I don't have so much money this year."

Wal-Mart, Old Navy, which is part of Gap Inc and KMart, owned by Sears Holdings', are among the few retailers open on Thanksgiving. Toys R Us opens Thursday evening.

To narrow the gap in store hours with rivals, discounter Target Corp, electronics chain Best Buy and department store chains Macy's Inc and Kohl's Corp will open at midnight - their earliest starts ever.

Others, including J.C. Penney Co Inc, are opening early Friday morning as they did last year.

The National Retail Federation expects sales in November and December to be up 2.8 percent over last year, but below 2010's 5.2 percent gain. So retailers, online and offline, see little margin for error.

BARGAINS OR BUST

Wal-Mart starts its Black Friday "doorbuster" deals on Thursday at 10 p.m. at its stores. Amazon.com Inc, not to be outdone, will offer its deals online at 9 p.m.

Newspaper inserts on Thursday morning were boasting of the usual "Black Friday" bargains to get people into stores. For example, Staples Inc was offering an ink jet printer for 60 percent off, while Target was offering 46-inch, high-definition televisions for about 45 percent off.

The knock-down-drag-out fight comes as the rebound in sales cooled in October, when many top chains like Macy's and Saks reported disappointing sales.

It will be even tougher for chains that have struggled with sales declines lately, like Gap and Penney.

The NRF expects 152 million people to hit stores this weekend, up 10.1 percent from last year.

But much of that traffic will be fueled by bargain hunting, analysts said, with the real test coming after the weekend when retailers see if spending happens only if there are big bargains on the table.

Last year, after a strong Black Friday weekend, shoppers sat on their hands until closer to Christmas.

This year, those looking for steals beyond the requisite "Black Friday" specials may be disappointed.

In a research note on Tuesday, Wells Fargo economist Mark Vitner said: "Bargain hunters may have a tougher time finding those markdowns this year, as retailers are keeping a sharper eye on profit margins."

Either way, middle class shoppers are also more frugal now, taking a page from their lower income counterparts, Andrew Stein, vice president of marketing planning at Sears Holdings told Reuters.

"The Kmart customer has always been a value shopper. The rest of the country is behaving like the Kmart shopper now," he said, noting that there were a lot of people at Kmart's layaway lines on Thursday.

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Shoppers rebel against early Black Friday

Rebel Shoppers

For the first time in years, Michelle Nyberg probably will not be standing in line when stores open for their Black Friday sales.

She still loves a good deal — last year she spent a couple of thousand dollars on markdowns that day, the Friday after Thanksgiving — but Ms. Nyberg says that she does not want retailers to ruin the holiday for her or their own employees.

Ms. Nyberg is drawing the line now that major chains like Target, Macy’s, Best Buy and Kohl’s say they will open for the first time at midnight on Thanksgiving, and Wal-Mart will go even further, with a 10 p.m. Thanksgiving start for deals on some merchandise.

Retailers, eager to be the first to draw customers on one of the biggest shopping days of the year, are pulling the equivalent of the Republican primary shuffle by opening earlier and earlier than competitors.

Last year, a few stores, including Toys “R” Us, pushed into Thanksgiving.

But judging from the negative reaction among dedicated Friday after Thanksgiving shoppers on blogs, Twitter and Facebook, the wave of midnight openings this year has crossed a line.

Part of the objection is inconvenience. To be at or near the front of the line, shoppers say they will now have to leave home hours earlier — in the middle of the turkey dinner for some. But the wider objections reflect sentiments like those of the Occupy Wall Street movement, including a growing attention to the rights of workers and a wariness of decisions by big business.

Either way, many in the shop-till-you-drop crowd have had enough with Black Friday creep.

“I just don’t think that’s good business, in a sense, to make your employees come in on one of the biggest holidays of the year and cut their family time short,” said Ms. Nyberg, 31, a saleswoman in Villa Rica, Ga., for a molecular biology company. “With the economy the way it is, no one’s going to say, ‘I’m not going to do that, I’m going to quit or get fired over it.’ ”

One retail executive sounded sad about the decision to open earlier. Brian Dunn, the chief executive of Best Buy, said that the midnight opening “became an operating imperative for us” after competitors moved their openings back. “I feel terrible,” he said.

A handful of retailers are holding out, like J. C. Penney, which will open at its usual 4 a.m. on Friday. “We wanted to give our associates Thanksgiving Day to spend with their families,” said Bill Gentner, senior vice president for marketing.

Still, some of the big retailers making the switch said that the response from workers and customers had been positive.

“There are many associates who would prefer to work this time as they appreciate the flexibility it affords their schedules for the holiday weekend,” Holly Thomas, a Macy’s spokeswoman, wrote in an e-mail. A Target spokesman, Antoine LaFromboise, said that employees will get holiday pay for Thanksgiving work, and “we’ve heard from our guests that they are excited.”

But even with increased pay, some retail workers said in interviews that the holiday hours were a raw deal.

Anthony Hardwick, 29, who works at a Target store in Omaha, said he would have to leave Thanksgiving dinner with his fiancée’s family so he could sleep before starting a shift around 11 p.m. on Thanksgiving, followed on Friday by a shift at his other job, at OfficeMax.

Mr. Hardwick says he is glad to have a job, and does not mind the early hours on Friday, but “cutting into our holidays is just a step too far.”

He added, “Even though it’s a desperate time doesn’t mean that we should trade all the ground that our fathers and our grandfathers, everyone that came before us, fought really hard for.”

He has created an online petition urging Target to open at 5 a.m. Friday instead, which had attracted a handful of signatures as of Thursday.

The concern among customers about retail workers recalls an earlier era, when consumer advocates encouraged people to consider the impact of their shopping on sales clerks, said Lawrence B. Glickman, the chairman of the history department at the University of South Carolina.

In the late 19th century, as labor organizers pushed for eight-hour days and holidays off, consumer advocates told shoppers to “watch out for their complicity in the exploitation of workers through shopping” he said. That sentiment faded after the 1930s, he said, as consumer advocacy focused more on protecting shoppers.

For shoppers themselves — and the stores hoping to profit from them — the rush to midnight could have unintended consequences.

Last year, for instance, an adept shopper could be in the Toys “R” Us line for its 10 p.m. opening Thanksgiving Day, then line up at Wal-Mart to get a wrist band at 2 a.m. that assured a place in line for its sales starting at 5. In between, the shopper could swing by Kohl’s at 3, and Target or Macy’s at 4, and perhaps finish with Best Buy after its 5 a.m. opening.

“This year, people are going to have to pick and choose what store they’re going to leave behind,” said Jennifer Carr, 30, a homemaker in Jonesboro, Ga. She regularly hits the Friday sales, but says she is reconsidering that this year.

Wal-Mart said in a statement that “customers told us they would rather stay up late to shop than get up early.” But like Ms. Carr, many dedicated Black Friday shoppers say they are rethinking shopping on that day altogether.

Jill Paffrath usually attacks the Friday sales at Target like a ninja. After Thanksgiving lunch, she, her four sisters and two sisters-in-law study the Target ads and make a list of presents they want to buy. After dinner and card games, they drive to the Target in southeast Lincoln, Neb., four hours before it opens, ask a relative who is a police officer to drop off coffee, and bring a DVD player so they can watch “Christmas Vacation” every year.

As much as she loves that ritual, Ms. Paffrath said, she may now skip it.

“Where can it go from here?” she said. “We really don’t want to wait in line and miss Thanksgiving.”

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