The Ottumwa Courier

Community News Network

November 21, 2012

Retailers wait to see if economic concerns keep shoppers from Black Friday sales

Has the Grinch moved to Washington?

Retailers will soon find out if concerns over the so-called fiscal cliff and possible tax increases deter any shoppers from malls nationwide on Black Friday, the unofficial start to the holiday shopping season.

The National Retail Federation says holiday sales will rise 4.1 percent to an estimated $586.1 billion this year, compared with a 5.6 percent gain in 2011. Even though thousands of stores are opening earlier, 147 million consumers, or 5 million fewer than last year, plan to hit the malls this weekend, according to an NRF survey conducted by BIGresearch.

"We hear these guys on cable television with eerie music, talking about doom and gloom," Mortimer Singer, chief executive officer of New York consulting firm Marvin Traub Associates, said in a telephone interview. "Consumers get nervous when this kind of stuff happens."

To put them in a spending mood, retailers are opening earlier than ever and dangling discounts such as $7 board games at Target and $19 sweaters at Gap. Mindful that many shoppers plan to buy gifts online, Target and Best Buy are matching prices offered by online competitors such as Amazon.com, while some merchants are adding kiosks and mobile checkouts to integrate online and in-store shopping. Others have giveaways such as free family portraits in November at J.C. Penney Co. stores.

In an effort to lure shoppers into stores, malls have added such features as lounges, gift-wrapping services, even child- care, Joel Bines, a Dallas-based managing director in the retail practice at AlixPartners, said in a telephone interview.

The moves are "almost entirely related to the amount of business that has moved to the Web," he said.

U.S. consumers, whose spending makes up about 70 percent of the U.S. economy, have coped this year with political uncertainty, higher fuel prices and, in the Northeast, the fallout from Hurricane Sandy.

There are signs of improvement, including rising home prices and a jobless rate that's ducked under 8 percent in the past two months, the lowest since January 2009. Household confidence in the week ended Nov. 11 climbed to -33.1, the highest level in seven months, according to the Bloomberg Consumer Comfort Index, and has increased in 10 of the past 12 weeks. Still, that figure indicates that one-third of those surveyed hold a negative view of the economy.

Black Friday got its name because retailers traditionally turned profitable on the day following Thanksgiving. While that is no longer true across the board, Black Friday has become a powerful marketing tool and one of the busiest days on the U.S. shopping calendar. More than half of American consumers plan to shop during the holiday weekend, with about one-third hitting the stores on Black Friday alone, according to a survey conducted by the International Council of Shopping Centers, an industry group based in New York.

Thousands more stores are opening early this year, after a few chains tested the water last year.

Wal-Mart Stores, the world's largest retailer, will start its in-store specials at 8 p.m. on Thanksgiving, two hours earlier than last year. Gap, the biggest U.S. specialty-apparel retailer, is opening more stores, about a third of its total, mostly at 9 a.m. on Thanksgiving this year. Macy's is opening stores at midnight after Thanksgiving having done so for the first time last year. Kohl's, Staples and The Disney Store are among those offering "pre-Black Friday" specials.

Merchants that sell to teens can particularly benefit from earlier hours, according to John Morris, an analyst at BMO Capital Markets in New York. Most American Eagle Outfitters and Abercrombie & Fitch stores will open at midnight.

"It is literally a party, it is a teen party mob scene," Morris said. "These teens are going nuts over this stuff."

More than 180 of Mall of America's 520 stores will open at midnight on Thanksgiving, an increase from 65 a year ago.

Stores that didn't open early in 2011 "were bummed," said Julie Hansen, a spokesman for the Bloomington, Minn., mall. Several stores that opened at midnight last year had surpassed their sales figures from the previous Black Friday by 4 a.m., she said.

Customers have long complained about seeing Christmas decor in stores before kids had even finished devouring their Halloween candy, and retailers had traditionally saved their best come-hither deals for after Thanksgiving. More recently, though, some retailers began offering Black Friday deals online beginning on Thanksgiving and then opening stores on the holiday, and consumers followed.

"It's unfortunate, but it's just that constant creep forward. Soon, there will be no Thanksgiving holiday," Bines said. "The holdouts this year are next year's participants. It's just a question of who wants to push the envelope."

Not everyone is a fan of the extended hours. While the holiday openings, with their doorbusters and giveaways, create buzz, the downside is that adding hours on Thanksgiving can damage employee morale and performance in the long run, said Paul Swinand, a retail analyst at Morningstar Inc. in Chicago.

More than 130 petitions asking large retailers to forgo holiday hours have been introduced this year, according to Change.org, a website that allows activists to post petitions. That includes one from a Target worker calling for the Minneapolis-based discounter to revert to a 5 a.m. Black Friday opening that has garnered more than 350,000 signatures this year, according to the organization.

Wal-Mart workers demanding better pay and benefits have vowed to stage more than 1,000 protests online and outside U.S. stores this week. To gain leverage, protest leaders will have to turn out significant numbers of strikers and persuade bargain- hunters to go elsewhere. Similar protests in recent weeks have had little perceptible impact.

Some merchants, including J.C. Penney and Staples, say they'll remain closed on Thanksgiving because they don't want to infringe on their workers' time with family.

Even without opening early, retailers will benefit from the maximum number of days possible — 32 _between Thanksgiving and Christmas this year, said Roseanne McCauley, vice president of the Americas for Experian FootFall, which tracks traffic and other data for retailers.

"People have two more paychecks coming in before the end of the month," she said.

Adding a sales day from Thanksgiving "is going to absolutely increase volume" for retailers, enabling them to stick to their planned schedule of markdowns, McCauley said. "At the end of the day, the hours are driven by the consumers."

 With assistance from Matt Townsend, Sapna Maheshwari, Renee Dudley and Elizabeth Dexheimer in New York, Cotten Timberlake in Washington and Ari Altstedter in Toronto.

Text Only
Community News Network
  • computer.jpg In fan fiction, your favorite characters do what you want them to

    When J.J. Abrams took over the "Star Trek" franchise in 2009, he boldly went where the series hadn't gone before — romantically — pairing Uhura with Spock. Many fans disliked the change. Some loved it. Others didn't care, because they just wanted to see Kirk and Spock make out.

    May 22, 2013 1 Photo

  • screenshot fbi.jpg VIDEO: Orlando shootout tied to Boston bomb suspect

    The FBI says it was involved in a fatal shooting near Universal Studios in Orlando, Fla. CBS News senior correspondent John Miller reports that the victim was a friend of Tamerlan Tsarnaev, the older brother suspected in the Boston Marathon bombing.

    May 22, 2013 1 Photo

  • Moore Tornado rubble Okla. officials vow not to quit looking until everyone is found

    The tornado that killed 24 people and injured at least 100 others in the Moore and Oklahoma City area cut a 17-mile-long path that started in Newcastle and ended at Lake Stanley Draper. Nine of the dead are children.

    May 22, 2013 1 Photo 1 Slideshow

  • Meetings Today Eddyville Eddyville-Blakesburg-Fremont school board, 4 p.m., meeting to present 2013-14 initial proposal to Laborers Local 353.

    May 22, 2013

  • Agency Alumni Banquet set for June 8 OTTUMWA - The 130th Agency High School Alumni Banquet will be held June 8 at the Hotel Ottumwa. Social hour begins at 5:30 p.m. with dinner and program to follow. Honored guests will be the classes of 1938, 1943, 1948, 1953 and 1958. Tickets are $19

    May 22, 2013

  • Calendar Groups wanting to be included in the Calendar must submit the item every time the group meets, at least three days in advance of the meeting. Send information to Calendar, Newsroom, Ottumwa Courier, 213 E. Second St., Ottumwa 52501 or send email to n

    May 22, 2013

  • Norman-Tornado08.jpg Photos: Aftermath of massive tornado in Moore Storm victims were pulled from the rubble and residents began surveying the damage late Monday and early Tuesday in the Oklahoma City suburb of Moore, where a powerful tornado destroyed entire neighborhoods and left dozens dead.

    May 21, 2013

  • money.jpg Where to get the best deal on beer, haircuts, movies

    Looking for a good deal on a six-pack of beer? Try Charlotte. A haircut that won't burn a hole in your wallet? Harlingen, Texas, is your best bet. A trip to the movies? Hilo, Hawaii, is supposed to be nice this time of year.

    May 21, 2013 1 Photo

  • dog-found.jpg VIDEO: Tornado survivor's missing dog found during TV interview

    Barbara Garcia was being interviewed by CBS News about how she survived the destruction of her home to Monday's massive tornado in Moore, when the dog she feared dead was suddenly discovered alive in the rubble of her home.

    May 21, 2013 1 Photo

  • Norman Transcript.jpg Okla. front pages capture tornado aftermath View how several Oklahoma newspapers covered Monday's massive tornado in Moore. Please note that officials revised the death toll downward early Tuesday morning after some papers were printed, but it is expected to climb again as recovery efforts continue.

    May 21, 2013

Obituaries

Facebook
Must Read
Community Calendar
Loading…
Events by eviesays.com