Money Matters, Simplified.
Shoppers make the most of discounts on Black Friday
by Jamie Anderson - November 28, 2009 - comments
Customers throng retail outlets to grab the best deals on Black Friday
New York, November 28 -- As has been the trend in the past, retail outlets were able to attract scores of ‘deal-hungry’ shoppers. The huge discounts on televisions, toys and computers were simply irresistible for these budget-conscious shoppers.
Huge crowds descended on outlets across the U.S. even though they restricted themselves to hugely discounted items, revealed the National Retail Federation.
Wooing customers
The world’s largest retailer, Wal-Mart Stores Inc. had a $298 Hewlett-Packard laptop computer to offer. Meanwhile, Best Buy Inc., the biggest electronics chain, drew customers by offering a used 42-inch Samsung flat-panel TVs for a mere $547.99.
Marshal Cohen, chief industry analyst with NPD Group Inc., said of the shoppers, “The surprise news is that they are actually buying for themselves as well, due to pent-up demand and frugal fatigue.”
“They are saying ‘Let’s loosen up the purse strings a little bit,’ but it is still cautious spending,” noted Cohen.
The recession factor
Retailers have been reeling under the current recessionary forces. Shoppers have turned their backs towards the stores as threat of unemployment looms large.
This year's Black Friday is being closely watched by Wall Street’s analysts to look for signs as to whether and how much is the U.S. economy rebounding from recession.
In a poll conducted by BDO Seidman LLP in October, ninety-six of the 100 executives said they would entice customers by increasing promotions this year, offering the major discounts on consumer electronics.
The results were for everybody to see. Charles O’Shea, a New York-based retail analyst with Moody’s Investors Services claims he saw numerous shoppers standing at bus stops holding flat-panel sets.
“It looks like everybody has caught the promotional bug,” O’Shea said.
Black Friday and the shopping season
Black Friday is the Friday following Thanksgiving Day. It falls between the 23rd and the 29th of November, and marks the beginning of the traditional Christmas shopping season.
Although Black Friday is not an official holiday, many people take the day off as part of the Thanksgiving holiday. Empirical evidence suggests that the day is propitious for those in the retailing business as shoppers loosen their budget strings on Black Friday.
To make the most of the opportunity and attract a larger pie of the potential shoppers, retailers decorate their shops and open them really early.
A 5 a.m. or even earlier opening is a rule rather than an exception. Giants like Sears, Best Buy, Macy's, Toys "R" Us, and Wal-Mart, too, join the party, open as early as midnight and remain open for 24 hours on Black Friday.