According to ShopperTrak RCT Corp. and the National Retail Federation, sales on Black Friday and over the weekend came in better than expected given the overall sorry state of the economy and consumer confidence. The results were driven by early openings, numerous door-buster specials and deep discounts overall.
According to ShopperTrak, sales on Black Friday rose three percent to $10.6 billion. While significantly lower than the 8 percent gain last year and the smallest since a decline of 0.9 percent in 2005, the results were still described as "encouraging."
"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, in a statement. "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 calling Black Friday an "encouraging start," Mr. Martin noted that there's no guarantee the deep discounts will continue after Black Friday weekend to drive sales. Another challenge for the overall holiday season for retailers is that consumers have 27 days to shop this year as opposed to 32 in 2007, "which may catch some procrastinating consumers off guard, leading to lower sales levels."
According to the NRF's 2008 Black Friday Weekend survey, conducted by BIGresearch, more than 172 million shoppers visited stores and websites over Black Friday weekend, up from 147 million shoppers last year. Shoppers spent an average of $372.57 over the weekend, up 7.2 percent over last year's $347.55. Total spending reached an estimated $41 billion.
Friday saw 73.6 million people hitting stores and websites. The survey found that 23.3 percent of shoppers were at stores by 5 a.m. while 57.6 percent were at stores by 9 a.m.
Another 56.9 million shopped on Saturday, up from 48.3 million last year, while another 26.2 million people planned to shop on Sunday. On Thanksgiving Day, 16.2 million people shopped versus 10.9 million the prior year.
"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, in a statement. "Holiday sales are not expected to continue at this brisk pace, but it is encouraging that Americans seem excited to go shopping again."
Discussion Questions: How would you rate Black Friday's performance? Were stores overly promotional? How should stores adjust to keep up the momentum for the rest of the 2008 holiday season?