Black Friday deals lure US shoppers, biggest sales gains online

NEW YORK - Shoppers across the United States snapped up deep discounts on toys, clothing, and electronics both online and at stores on Black Friday, giving retailers a strong start to their make-or-break holiday season.

A healthy economy and rising wages gave people the confidence to splash out on retailers' annual raft of bargains.

“The prices today are very good,” said Jose Manuel Cruz Hernandez, 59, who hit the Del Amo Fashion Center in Torrance, California, with his sister Paulina Cruz, 66, who comes every year from Mexico City to shop.

The pair spent $120 on princess dolls and other toys at the Walt Disney Co store, where items were 20 percent off. They spent a similar amount at Gap Inc, where items were discounted by about 55 percent.

Cruz Hernandez, a foreman at an aerospace firm, said he was comfortable with the US economy and his own finances and plans to spend another $1,000 on holiday gifts - about the same as last year.

A similar story played out online, where shoppers spent $643 million by 10 a.m. ET, up 28 percent from a year ago, according to Adobe Analytics, which tracks transactions at most of the top US online retailers. Smartphone sales in particular contributed to gains.

Foot traffic looked healthy at stores offering discounts, although detailed numbers on brick-and-mortar holiday sales will not be available for several days.

"Overall, Black Friday doesn't have the sense of urgency as in the past and feels more like a busy regular weekend day in many of the stores," said Dana Telsey at Telsey Advisory Group.

"Many of the promotions were available for the past couple of weeks," Telsey said. "We haven't noticed desperation from any retailer."

Shares of Macy's Inc, Kohl's Corp, and Target Corp all closed down on Friday and weighed on the broader S&P 500 retailing index, which closed down 0.56 percent.

Investors are concerned retail sales growth may have peaked in the second quarter and business will slow down as comparisons get tougher, said Brian Yarbrough, retail analyst with Edward Jones.

Victoria's Secret owner L Brands, Walmart Inc and American Eagle Outfitters rose. J.C. Penney Co Inc ended flat and Amazon.com Inc closed slightly lower.

The overall stock market finished a shortened session with losses.

STRONG ONLINE SALES

Early numbers showed overall retail sales, both in stores and online, were in line with expectations, according to Mastercard Inc's SpendingPulse retail report. The firm expects overall Black Friday sales to top $23 billion this year, up from $21 billion last year.

Mastercard combines sales activity in its payments network with estimates of cash and other payment forms. It said cold weather in the eastern United States and wet weather in the west may be pushing more consumers online.

Online spending is on track to hit $6.4 billion on Friday, Adobe said. Online sales on Thanksgiving Day were up 28 percent at $3.7 billion.

The National Retail Federation forecast US holiday retail sales in Nov. and Dec. will increase between 4.3 and 4.8 percent over 2017 for a total of $717.45 billion to $720.89 billion. That compares with an average annual increase of 3.9 percent over the past 5 years.

About 38 percent of American consumers plan to shop on Black Friday, a Reuters/Ipsos poll showed last week.

Very cold weather in the US Northeast may have kept some shoppers at home, although industry analysts also reported added demand for coats and other warm clothing. An Athleta clothing store in Tysons, Virginia, provided hot chocolate with marshmallows to women in line for the dressing room.

DEAL FRENZY

Shoppers picked up big-ticket items such as TVs, Apple Inc iPads and Watches at Target, while phones, toys, gaming consoles and cookware were top sellers at Walmart Inc.

Many shoppers sought out air fryers, which do not use oil to deep fry food and Instant Pots. Kohl's Chief Executive Michelle Gass told CNBC the company was selling 60 Instant Pots per minute online on Thanksgiving Day.

While most retailers have not changed their deals and discounts year-over-year, many have moved their start dates earlier and offered more teasers, according to deal site RetailMeNot.

The deepest discounts in apparel and accessories were offered by Michael Kors, which ran a 60 percent discount sale; Gap, which offered 50 percent off site-wide; and Nordstrom, which gave away up to 60 percent on merchandise.

Other deals included:

An H&M store in Manhattan offered 30 percent off everything in-store and online.

Macy's in Herald Square, Manhattan, sold a Coach designer wallet, originally $225, for $53. Coach bags there, originally $259, were half off.

Midtown Comics was taking 25 percent off everything at its 3 Manhattan locations until noon.

An Eddie Bauer in Chicago offered 50 percent off all items.

At a Chicago-area Pandora, which sells popular charm bracelets that can cost up to $1,000, jewelry was 35 percent off before 10 a.m. and 25 percent off for the remainder of the day.

J Crew clothing was 50 percent off. Its site experienced some technical difficulties.

Walmart was selling a Google Home mini for $99.

REPLACING A TOY STORE

Many retailers, reacting to the bankruptcy of the Toys 'R' Us chain, are catering to parents.

Target said in October it planned to dedicate nearly a quarter of a million square feet of new space to its toy business across 500 of its stores.

“Toys 'R' Us had better quality for toys,” said Ashley Drew, 29, shopping for her 5-year-old daughter at a Los Angeles-area Walmart, next door to the empty shell of a Toys 'R' Us store.

Department store JC Penney, known for its mid-priced apparel, has also made a push into toys.

Carolyn Pertette from Wilkinsburg, Pennsylvania, shopped in the early morning at the Waterfront Mall in Pittsburgh.

"I'm concerned about where I'm going to get toys," she said.

source: news.abs-cbn.com

Black Friday sale

A large crowd of people shop during a Black Friday sales event at Macy's flagship store on 34th Street in New York City, U.S., Thursday. The much-awaited nationwide sale happens every Thanksgiving Day in the U.S. 

source: news.abs-cbn.com

Black Friday rush

Shoppers rush to buy appliances as they compete for items on sale during the Black Friday sale at a store in Sao Paulo, Brazil on Thursday. The Black Friday sale is part of the Thanksgiving holiday weekend in Western countries.

source: news.abs-cbn.com

US shoppers browse stores, buy online as Black Friday deals beckon

CHICAGO/NEW YORK - US stores offered deep discounts, entertainment and free gifts to lure bargain hunters on Black Friday, the traditional start of the holiday retail season, but some shoppers said they were just browsing the merchandise, reserving their cash for internet purchases.

Still, a sharp rise in online sales brightened the overall outlook for those traditional retailers that have expanded beyond brick-and-mortar outlets, sending their shares higher in day-after-Thanksgiving trading. Stores also had carefully managed inventory, seeking to ward off any post-holiday liquidation that would weigh on profits.

There was little evidence of the delirious shopper frenzy customary of Black Fridays from past years, even as some stores appeared to be getting creative with gimmicks besides heavy discounts to draw in customers.

No actual data for Friday's brick-and-mortar business was immediately available.

Despite anecdotal signs of muted in-store sales - fewer cars in mall parking lots, shoppers leaving stores without purchases in hand - consumers are still expected to spend more overall this holiday season than last, analysts and industry executives said.

Black Friday online sales totaled at least $3.54 billion by 8 p.m. EST (0100 Saturday GMT), up 15.6 percent from a year ago, according to Adobe Analytics, which measures transactions at the largest 100 U.S. web retailers. On Thanksgiving Day, U.S. shoppers spent more than $2.87 billion online.

Adobe projected internet sales would still reach a record $5 billion by the end of the night, with online retailers forecast to rake in an additional $6.6 billion on Cyber Monday.

Indeed, some chains struggled to keep up, with brief online outages experienced by Lowe's, H&M and the Gap, among others, according to website performance monitors.

Macy's Inc customers in several states, including Texas, Arizona and Illinois, took to social media to complain about the retailer's credit card processing system. The company acknowledged that processing was taking longer than usual in its stores and said it was working on the problem.

The hiccups dragged Macy's shares 0.6 percent lower in extended trading. They had ended the regular session up 2.1 percent, boosted by comments from Chief Executive Jeff Gennette, who told CNBC that Macy's was better off this year than last, had robust online demand and was in a good place for holiday promotions.

Macy's and J.C. Penney Co Inc did a better job of ordering and controlling inventory this time, according to Burt Flickinger, managing director of Strategic Resources Group, a consultancy with seven researchers out in the field.

"The turnout this morning has been relatively slow, but it is still the best we have seen in three years," Flickinger said, citing improving consumer confidence, a strong job market and healthy housing prices.

Fair weather across much of the nation also was factor, said National Retail Federation President Matthew Shay.

Some shoppers were enticed by the promise of spectacle, while others felt the pull of nostalgia.

"It's like a hangout, it's an experience," said Jonathan Lin, 17. "All my friends are back from college and we got together."

"There’s something nostalgic about being at the stores this early,” Jennifer Stasiak said at Chicago’s popular Oakbrook Center.

Not everyone found the Black Friday magic irresistible.

“I avoid the store, too many crowds,” said Elana Silverstein, 32, a school counselor enjoying a warm, sunny day at a Los Angeles park. Instead, Silverstein said, she bought several personal items on sale Thursday night through the online marketplace Groupon.

Major retailers generally traded higher on Wall Street. J.C. Penney climbed 0.6 percent and Wal-Mart Stores Inc edged upward. Amazon.com Inc closed up 2.6 percent at a record high.

Target Corp did not fare as well, with analysts noting that it closed its stores for several hours overnight while many rivals kept their doors open. Its shares fell 2.8 percent.

NOT WHAT IT USED TO BE

The period between the US Thanksgiving holiday and Christmas can make or a break a retailer, accounting for as much as 40 percent of annual revenue and leading many businesses to go the extra mile to stoke shoppers' interest.

Godiva gave out free chocolates, while Sephora offered face masks and perfumes. Dancers entertained Bergdorf Goodman shoppers, according to the New York Post.

Many chains, including Wal-Mart, Target, Macy's and J.C. Penney, opened stores on Thursday evening and most were offering extended deals online. Some started offering in-store deals earlier this week.

Macy's said some 16,000 shoppers were lined up outside its flagship Herald Square store in Manhattan when doors opened at 5 p.m. on Thursday for its Black Friday eve sale.

The deepest discounts included more than $200 off some Best Buy TVs; all bras across Victoria's Secret Pink stores priced at $25; half-priced video games at Target; and $50 off PlayStation 4 Pro gaming consoles at Wal-Mart.

Here and there were signs of the pandemonium for which Black Friday was long known.

A confrontation between two men in the parking lot of Willowbrook Mall in Houston left one shot and the other stabbed, though the origins of the clash and whether it was shopping-related was not immediately known, police said.

A false report of gunfire prompted shoppers to flee the Westland Mall in Hialeah, Florida. Stores reopened less than an hour later, a mall security supervisor told Reuters by phone.

Near Birmingham, Alabama, police broke up a fight on Thursday night between two women who may have been arguing over a sale item at the Riverchase Galleria, mall officials said.

The growing online shopping trend, led by Amazon, has forced the toy chain Toys R Us and apparel retailers True Religion, the Limited, Rue 21 and Payless Shoe Source to file for bankruptcy this year.

Still, traditional retailers earn the bulk of their revenue from in-store buys. Shoppers in brick-and-mortar stores can also be easier to tempt with impulse or add-on purchases than online browsers.

Garden State Plaza in Paramus, New Jersey, was crowded but not chaotic. Shoppers came for deals with nothing specific in mind. Many enjoyed the experience of trying on clothes rather than shopping online.

A Macy's employee there said it was less busy on Friday because the store had been open, and packed, on Thursday.

"They’re all online," said Sarah Jones, 42, an employee at Roosevelt Field Mall on Long Island. "I’ve worked in retail my whole life, trust me."

source: news.abs-cbn.com

'Black Friday' frenzy begins in US

LESSBURG - The traditionalists don't like it, but the "Black Friday" shopping frenzy is as much a part of the Thanksgiving holiday in the United States as turkey and pumpkin pie.

And it's only Thursday.

Americans will spend tens of billions of dollars over the four-day holiday and there was certainly no messing about at Leesburg Corner, a Virginia outlet center only a short drive from the US capital Washington.

There was hardly time for the roast turkey and stuffing to settle when most shops opened there on Thursday, Thanksgiving Day, for a 28-hour bonanza of breathless consumerism that was to stretch overnight and drag on nonstop until 10:00 pm Friday.

Henri Brown, 17, and brother Will, 15, were among the first through the doors on a chilly winter's evening.

Henri forked over $130 in the first hour and proclaimed himself happy with his early purchases: two jackets -- a dark blue one he was already wearing -- sunglasses and trousers.

"Most places have 50 percent or more off, it's pretty good. I come here most years to get clothes for the winter, but it's not as crazy busy as previous years," he said.

'Maybe all night'

The four-day Thanksgiving weekend is the kickoff to the US holiday shopping season, and Black Friday has long been considered the critical day that turns retailers' books from red to black.

But there has been criticism of those retailers that throw their doors open on Thanksgiving instead of actually waiting for Black Friday.

Don't the store workers deserve a day off to spend with their families too?

"They don't have to work. I guess they do it for the money. They are not being forced here," said Henri. "And they might enjoy the rush of people."

Vera Luo, a 19-year-old from China studying in Washington, came armed with a suitcase she was ready to fill to bursting with new acquisitions that she said would be more expensive in China.

She and two friends paid $60 for a taxi from the US capital and they were in it for the long haul.

"I have no idea where my friends are or when I will find them," said the economics student, clasping a directory of the more than 100 stores in the complex.

"So far I have only bought lens solution, but I have a budget of $500 and I want to buy a bag from Coach.

"I don't know how long we will be here. Maybe all night."

Tactical approach

Mamadous Niass, 48, a cyber-security engineer originally from Senegal, declared himself something of an old hand in the art of the post-Thanksgiving splurge.

"It's not the cheapest time in the year. After Christmas is cheaper, but I came today because there are more options -- nothing is left after Christmas," he said sagely.

He too was through the doors early but was taking a more tactical approach, refusing to jump right into the spending bonanza.

"I am well-prepared and have a list of four brands I want -- Columbia, Tommy Hilfiger, Calvin Klein and Ralph Lauren -- and I will get," he said firmly.

Jeanette, a local who gave her age as "104," was another refusing to get carried away by the discounts of more than 50 percent.

She had scouted a Michael Kors purse online before moving in for the kill for just over $100.

"I did not want to pay the high price before but it was on a pretty big discount," she said, rubbing her cheeks to stave off the cold.

Taking a breather on a bench while her daughter and granddaughter did the running about, Jeanette too said it had been noticeably busier in previous years.

"A few years ago it was not like this, but prices have gone up in the last few years," she said, adding with a grin: "But I am not done quite yet."

source: www.abs-cbnnews.com

Are Black Friday Deals Worth The Hassle?

Now that Black Friday has started the creep into Thanksgiving Day, you may be wondering you’re really getting a deal—or if it’s just more manipulation.

All those signs advertising 25%, 40%, even 50% off can be difficult to argue with, but the truth is that in most cases, what you’ll actually be hunting this Friday is not a good deal, but the thrill of a perceived good deal. Even though discounts have risen since 2009, stores’ profit margins have remained largely the same.

The reason?

None of these goods are priced to sell at full price in the first place. If they happen to, prior to deep holiday discounts, that’s great. But according to The Wall Street Journal:
 
    “Big retailers work backward with their suppliers to set starting prices that, after all the markdowns, will yield the profit margins they want.”

To understand why this is, you first have to understand how markup works. When a supplier sells an item to a retailer, the retailer buys it at a wholesale price and then sets a retail price that nets them a profit that’s double, triple, or even more what they paid. By setting that retail price even higher than normal, stores can advertise and give deep discounts while still maintaining comfortable margins.

Two years ago, The Wall Street Journal found that prices on many popular gift items rise in late fall in preparation for just this practice and stay high through the holidays. The one, odd, exception they found? Blenders, which sink in price the closer it gets to December 25th.
 
But what about doorbusters?

Generally speaking, the only real good deals you’ll find on a Black Friday are those “doorbusters” you see people lining up for days in advance. These are advertised to entice shoppers, and some larger stores will even take a loss on these items, assuming that shoppers will make other purchases once they’re in the store.

Even then, there are some drawbacks. Most retailers only stock a limited quantity of doorbuster items, meaning you may actually have to camp out to get one. Also, if you arrive too late to find your deal gone, be wary of sales people pushing a very similar, much more expensive item your way.

So is getting up at 4 am this Friday morning really worth it?

Probably not.

This year especially. Unless you’re after one of those big, deeply-discounted items meant to draw shoppers in, you probably won’t be saving much. And with many sales starting pre-Thanksgiving and continuing all the way into the holiday season both online and in-store, you’ll have plenty of opportunities to do your shopping on your terms.

source: totalmortgage.com