The lousy economy didn’t deter millions of Americans from emptying their wallets on Black Friday, as retailers and e-tailers rang up better-than-expected sales, surprising many analysts and giving hope to a beleaguered industry that this holiday season may not be a total bust afterall.
According to preliminary estimates from ShopperTrak RCT Corp., consumers spent $10.6 billion on Friday, up 3 percent over 2007.
“Retailers truly experienced what we've dubbed the 'perfect storm' over the last few weeks, with the financial markets melting down, the presidential election which typically slows retail traffic, and relatively high gasoline prices – all of which slowed both retail traffic and spending,” said Bill Martin, co-founder of ShopperTrak.
“Under these circumstances, to start off the season in this fashion is truly amazing and is a testament to the resiliency of the American consumer, and undeniably proves a willingness to spend.”
While Martin said the preliminary sales figures were encouraging, he warned that there's no guarantee that deep discounts will continue after Black Friday weekend, which could slow spending.
According to the National Retail Federation, a trade group, more than 172 million shoppers visited stores and Web sites over Black Friday weekend, up from 147 million last year.
Shoppers spent an average of $372.57 this weekend, up 7.2 percent over last year’s $347.55, according to the NRF’s Black Friday Weekend Survey.
Pent-up demand on electronics and clothing, plus unparalleled bargains on this season’s hottest items helped drive shopping all weekend," said NRF President and CEO Tracy Mullin. "Holiday sales are not expected to continue at this brisk pace, but it is encouraging that Americans seem excited to go shopping again."
Not surprising, Friday was the busiest day of the weekend with 73.6 million people shopping online and in stores stores for doorbuster sales. The survey found that 23.3 percent of shoppers were at stores by 5 a.m. Friday, while more than half --57.6 percent -- were at stores by 9 a.m.
Many shoppers (50.9 percent) bought clothing and accessories over the weekend, while 39.0 percent bought books, DVDs, CDs and video games; 35.9 percent purchased consumer electronics; 28.5 percent bought toys. Curiously, only18.7 percent of shoppers purchased a gift card, down from 21 percent last year.
Meanwhile, the analysts over at ComScore, which tracks sales in the online universe, report that e-commerce spending on Black Friday was up 1 percent this year over last, to $534 million. For the combination of Thanksgiving Day and Black Friday, online sales were up 2 percent relative to last year.
One of the obvious benefits of online shopping is the ability to avoid rising before dawn to hit the malls. In fact, only 11 percent of Internet shoppers bought merchandise between 4 a.m. and 8 a.m. One-quarter of all purchases were made between noon and 4 p.m., and the single busiest hour was from 12 to 1 p.m.
With Black Friday 2008 in the record books, many shoppers are setting their sites on today, Cyber Monday, the ceremonial kickoff to the online holiday shopping season. According to a survey by Shop.org, a division of the National Retail Federation, nearly 85 million consumers plan to shop online from home or at work today, up from 72 million in 2007 and 61 million in 2006.
Scott Silverman, Executive Director of Shop.org, said online retailers have been planning their Cyber Monday promotions for months and bargain hunters are sure to thousands of deals online. Silverman said that 84 percent of retailers are expected to have a special promotion for Cyber Monday, up from 72.2 percent last year.
Here’s a smattering of Cyber Monday promotions that flooded my inbox today (as always check out the actual Web sites for details):
- MLB.com (Major League Baseball) – 25 percent off entire orders placed between 12 p.m. and 5 p.m.
- American Eagle Outfitters – Free shipping on all orders.
- Gap – 15 percent off entire order and free shipping.
- Kohl’s – 15 percent off orders of $100 or more and free shipping.
- Modell’s – 20 percent off entire order.
- Hewlett-Packard – Savings of up to 50 percent and free shipping.
- Rawlings.com – 50 percent savings on select sporting goods merchandise.
- Barnes & Noble – 15 percent off any single item and a free winter throw blanket with purchase of $75.
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