
Flore Roger Guillot
December 2, 2008Dec. 4
December 4, 2008While local and national retailers can breath easier after shoppers jammed stores this past Black Friday weekend, many do not expect to sustain it through the holiday season, according to store managers and retail research groups.
The National Retail Federation’s 2008 Black Friday Weekend survey, conducted by BIGresearch, reported more than 172 million shoppers visited stores and Web sites over Black Friday weekend, up from 147 million shoppers last year.
Originally, the NRF predicted there would be about 128 million shoppers this weekend.
Locals lined up outside of discount and department stores from Martin Luther King Blvd. to Southland Mall for huge sales that began as early as 4 a.m.
“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.”
Retailers are split on whether the growing local economy will translate into a banner holiday sales season for them.
“Right now, Houma is having a good time. The economy in Houma is pretty good compared to the rest of the country,” said Hugo Cruz, the first-year manager at the Houma K-Mart store. “Nationally, we’re going through a recession right now, but I feel confident about Houma.”
“I think it’s going to be okay. It will probably be about the same as last year,” said Wanda Parker, Kay Bee Toys store manager in Southland Mall. “I don’t think people are going to spend as much money even with the lower gas prices.”
According to the survey, shoppers spent an average of $372.57 this weekend, up 7.2 percent over last year’s $347.55. Total spending reached an estimated $41 billion.
Nationwide, the majority of shoppers bought clothing and accessories, but locally, consumer electronics were the purchase of choice.
Shoppers in the electronic departments of Wal-Mart, K-Mart, Target and Best Buy left the stores with multiple big-ticket items, including flat screen televisions and Blue-ray disc players.
“Electronics are always our number one seller – TVs, Nintendo Wiis, video games, that sort of thing,” Cruz said.
Toys were another big seller with 28.5 percent of shoppers buying at least one, according to the survey.
However, with no must-have toy this season, there is nothing to draw customers into Parker’s store except deep discounts.
“No one has come in here looking for a specific item,” she said. “There is really not a big toy for little girls this year. The only thing for boys maybe is the bakugan (a strategic board game based on the Japanese anime series). “I have a 10-year old son who plays with them.”
Many consumers continued their holiday bargain-hunting weekend into the next day.
Cyber Monday, the Monday after Thanksgiving, was more promotional than ever as retailers offered one-day sales and special offers to bring holiday shoppers online.
According to an eHoliday Survey, 83.7 percent of retailers had a special promotion for Cyber Monday, up from 72.2 percent last year. Popular promotions included specific deals (38.8%), email campaigns (32.7%), and one-day sales (24.5%). Nearly one-fourth of retailers (22.5%) offered free shipping on all purchases.
A BIGresearch survey conducted for Shop.org reported 55.8 percent of workers with Internet access, or 72.8 million people, will shop for holiday gifts from work. Only 44.7 percent said they shopped online from work in 2005.
With the nation teetering on a recession, analysts and store managers do not expect the shopping frenzy to persist throughout the rest of the holiday season.
“Though retailers should be encouraged by strong traffic and sales over the weekend, consumers are still being cautious,” said Phil Rist, an executive vice president with BIGresearch. “Weekend shoppers indicated that they are still sticking to a budget and thinking carefully before making any holiday purchases.”
“As a company, we feel well positioned for this economy,” said Wal-Mart spokeswoman Anna Taylor. “Our focus is on continuing to deliver value to our customers. We’re devoted to price leadership, and our customers know they can expect low prices.”
The NRF, the world’s largest retail trade association, continues to project that holiday sales will rise 2.2 percent this year to $470.4 billion. That would be the smallest percentage increase since 2002.
For Parker, who has been with Kay Bee for nine years and a manager for three weeks, this season may be an extension of decline.
“We’re trending down,” she said. “We were up in 2005 and it has been going down since then. People just aren’t spending money.”
Given the gloomy buzz about the nation’s economic picture, local retailers weren’t sure what business awaited them on Black Friday. According to the National Retail Federation, the news is pretty good. Slashed prices on electronics and clothing were the biggest draw. * Photo by KEYON K. JEFF