Consumers Cherry Pick Black Friday Sales
By Michael Panzner - November 30th, 2009, 6:00AM
The good news, according to the National Retail Federation, is that 195 million U.S. shoppers visited stores and websites this past weekend, an impressive 13% jump over last year.
The bad news: average spending fell nearly 8% to $343.31 per person, the lowest level in four years, while overall sales were up only 0.5% versus last year’s total.
In sum, it looks like a lot more people came out to cherry pick the biggest bargains — but not much else. That doesn’t seem to be a particularly encouraging sign, especially for retailers’ margins.
Source:
Black Friday Verdict: As Expected, Number of Shoppers Up, Average Spending Down
National Retail Federation, November 29, 2009
http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=841
November 29th, 2009 at 6:00 pm
Will this finally convince Wall St. that the American consumer is making a long term change in his/her behavior?
Nah.
November 29th, 2009 at 6:06 pm
So, depite almost universal anecdotal evidence to the contrary, 13% more people shopped, but those who did buy bought (on average) 8% less, and the total is flat?
Something seems screwy about that.
November 29th, 2009 at 6:28 pm
There are additional 10+ million of households where at least 1 person lost his/her full-time job (but other members of the household are still working.)
It’s only natural that this newly unemployed class has nothing better to do but to get up at 2am and drive to the local WalMart. But unlike in the years past, these “consumers” are after ONLY MOST DISCOUNTED items, i.e. $199 laptops and $249 LCD TVs. They need/want “stuff” but can’t justify buying anything at higher than the most rock-bottom prices.
I know, because I was one on them in 2001!
Can anyone project what will WalMart earn from a sale of a $199 laptop? (not a netbook, but 15″ laptop w/DVD drive and everything?)
November 29th, 2009 at 7:03 pm
as shopping attendance was up and sales were flat or down, i guess that gas stations and parking garages did better unless everybody car pooled. if they couldn’t car pool then only shoe leather is left.
this thanksgiving holiday was no panacea except fresh turkey traded at near record lows. .89cts a lb at stop/n/shop.
happy holiday,
ps: not good morning vietnam but good morning dubai.
November 29th, 2009 at 7:23 pm
Spending down 8% per person? This is very encouraging. We will not have a real, sustained recovery until household balance sheets are repaired.
November 29th, 2009 at 7:59 pm
Enjoy: http://thechive.com/2009/08/13/daily-morning-randomness-81309-30-photos/random-funny-hilarious-fcc-19/
November 29th, 2009 at 9:34 pm
Is it official ‘Baghdad Bob’ works for the NRF yet? Or is he still at the National Association of Realtors?
Anyways, a little off-topic, but has the famous “woods” scene (where the hillbillies could tell taxpayers to “Squeal like a pig!” and “You’ve got a purty mouth”) from “Deliverance” been re-worked yet? And if so, who will be our Burt Reynolds???
November 29th, 2009 at 10:02 pm
Good news… bad news… the reality is there is strength but most people are still extremely cautious, including institutional investors. Buy only the best stocks and hold some small inverse positions!
November 29th, 2009 at 10:34 pm
I see it as a win-win. More people were shopping but were more conscious on what they were spending.
As far as $249 LCD TVs, there were ads for those in this Sunday’s papers (Best Buy for one). Who needs to be at a store at 2AM?
November 30th, 2009 at 12:03 am
It’s the first time all year our family spent money on things we didn’t really need. After holidays the wallet will be shut tightly until next black friday if there’s any left.
November 30th, 2009 at 6:21 am
Shoppers Showed Up, but Spent on Bargains
http://www.nytimes.com/2009/11/30/business/30retail.html
More Shoppers Hit Stores, but Spend Less Each
http://online.wsj.com/article/SB10001424052748703300504574566241121067778.html
November 30th, 2009 at 7:39 am
[...] traffic was up slightly. Cherry picking sales items was quite common. But we also know savings are up unemployment is up and consumer confidence is [...]
November 30th, 2009 at 9:49 am
[...] is having any impact on investors’ minds, this can’t be a positive. http://www.ritholtz.com/blog/2009/11/consumers-cherry-pick-black-friday-sales/ However, there does appear to be a decent increase in on line [...]