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

US stores get creative to battle e-commerce As Black Friday nears

NEW YORK - The photo op with Santa Claus has long been a holiday mainstay for American children. But this year, shopping malls in several states are scheduling glamour shots for man's best friend.

As the Christmas shopping season kicks into high gear on Black Friday, the day after Thanksgiving, portraits of St. Nick with a family's beloved dog are just one way retailers are looking to attract customers in the face of exploding e-commerce.

Brick-and-mortar stores have expanded their bag of tricks -- and gotten increasingly bold -- as they look to lure shoppers who might otherwise be happy to stay on the couch and pick up gifts while still in their pajamas.

The flagship Bloomingdale's store in New York has held yoga classes, and Nordstrom has displayed Tesla cars near the section for men's suits.

A number of shops now ply visitors with food and drink.

For the holiday shopping season, malls are hosting gingerbread decorating sessions, visits from the Grinch -- Dr. Seuss's beloved Christmas villain-turned-softie -- and ugly Christmas sweater nights.

Temporary ice skating rinks and magical winter decor are also being used to draw customers intent on an in-person holiday experience.

Wal-Mart Stores plans to throw more than 20,000 "holiday parties" at which children can pose for "selfies with Santa."

"All of these retailers are desperate to get people into their stores," said analyst Neil Saunders, managing director of GlobalData Retail, who added a note of caution about all the promotions.

"Whether they work or not is open to debate."

THE DRAW OF THE INTERNET

Most experts predict a solid holiday shopping season, with IHS Markit projecting overall sales growth of 4.2 percent to about $685 billion, said Chris Christopher, executive director at IHS.

Online sales are expected to account for 18.3 percent of holiday sales this year, up from 16.8 percent last year, according to IHS.

Surveys show that creating a festive holiday atmosphere is one way to prompt consumers to pocket their smartphones for a few hours and hit the mall.

About a third of consumers said they enjoyed holiday shopping as a family tradition and 23 percent said they most enjoy holiday decorations, said a National Retail Federation survey.

Tourist Karen Boyd, who was visiting New York this week from Palo Alto, California, said she expects to do half of her shopping online and half of it in stores this year.

"The years I've done 100 percent online, it doesn’t feel like you've done your holiday shopping!" she said near Saks Fifth Avenue's famed holiday window display as Christmas carols played in the background.

NEW APPS AND CURBSIDE DELIVERY

As e-commerce has grabbed bigger market share, chains like Target and Gap have invested heavily in smartphone apps and sophisticated "big data" programs to target consumers and price most effectively.

Upscale department store Nordstrom is offering 24-hour curbside pickup at a handful of stores for the final nine days of the shopping season.

"Customers increasingly want to shop where, how and when they choose, and 24/7 Curbside Pickup is one service we're offering to support their experience," said Shea Jensen, senior vice president of customer experience at Nordstrom.

Department store Kohl's is taking to heart a common motto -- if you can't beat them, join them.

Kohl's will accept returns of goods bought on Amazon at its stores in Chicago and Los Angeles -- and will pack and ship the unpackaged items back to the online behemoth at no charge.

The hope is that Amazon shoppers will linger and buy a few items from Kohl's.

"We have a really very simple, straightforward objective here, and that is driving traffic is the number one priority we have as a company," chief executive Kevin Mansell said earlier this month.

HEART OF THE PROBLEM?

For Saunders, while doggie pics with Santa might draw pet lovers to stores, other initiatives are less inviting. And for him, the real issue is on the product side.

"A lot of these retailers aren't delivering what people want," he said.

David Simon, chief executive of the mall giant Simon Property Group, said stores should shake up their approach to customer service, highlighting Apple's attentiveness to customers and sleek store design.

"I think if they did that in a more comprehensive way through checkouts service, styling . . . they would see a pickup in their in-store sales," Simon said on a recent conference call.

Shopper Melin Ghotan said "bad customer service" had marred her recent purchase at a video game store -- a clerk balked when the Los Angeles mother requested a second shopping bag for the items.

"I'd have rather bought it online," she said as she walked near New York's lamdmark Rockefeller Center.

source: news.abs-cbn.com

Retailers give shoppers new reasons to use mobile phones in stores

NEW YORK - At some Macy's outlets this holiday season, shoppers who download the retailer’s app will be able to use their smart phones to guide them through the store to products they’re seeking.

At JCPenney, customers will be able to take a snapshot of, for example, boots worn by a person passing by and quickly find out if the store has similar ones in stock. And Staples is testing an app that will allow sales clerks to let customers know how the store’s prices match up against Amazon and other rivals.

Hoping to claw back market share from online rivals - and tired of watching customers use their phones to find better deals than those offered in stores - brick and mortar retailers are trying to give shoppers different reasons to use their phones while doing holiday shopping.

The new apps will allow customers to easily order out-of-stock items for home delivery, to check store prices and even to summon a clerk.

But the retailers’ efforts will face two significant challenges in the looming holiday season: getting customers to embrace the new technology, which is still sometimes glitchy and dependent on in-store systems, and getting them to trust that stores can match the Web’s prices and convenience.

Retail purchases by mobile phone have increased by 34 percent in the last year, according to IBM, which estimates that more than 40 percent of the online traffic and about 20 percent of sales this Thanksgiving weekend will come from smart phones.

A Reuters/Ipsos poll of more than 3,000 respondents this month found that about half of those surveyed said they would use their mobile phones while shopping in stores this holiday season, for such things as making price comparisons, taking photos or researching products. Last year, only about 42% of respondents said they would use their phones while shopping.

Companies that don’t make mobile work are playing a "very dangerous" game, said Jay Henderson, head of IBM’s cloud-based marketing platform. "Retailers that can’t deliver a more personalized experience on mobile devices will start losing customers to businesses that can," he said.

In addition to its pilot program guiding customers to products within stores, and a photo program similar to JCPenney's, Macy's has taken inspiration from dating app Tinder, recommending products to customers online who swipe one way to like an item and the other to reject it.

JCPenney's app can be used to scan barcodes to pull up product information or order out of stock items, and it saves digital coupons - two increasingly common offerings in retailer apps.

“We look at using phones in stores as an enhancement to shopping,” said Kate Coultas, a representative with JCPenney which is heavily focused on mobile this year.

SERVICE WITH A TAP

Stores are trying to make customer service easier, too.

Best Buy's app now lets shoppers call, text or email a representative while in stores.

Target Corp is testing an in-store "digital service ambassador" in 25 Los Angeles stores to help customers use Target apps.

Ulta Beauty is testing an app that will allow clerks to access customer information and point them to products they might like.

Faisal Masud, executive vice president of global e-commerce at Staples, said his company knows that it must satisfy the desires of its customers to find low prices. The company, like many others, will match online and in-store prices of competitors, including Amazon, Best Buy and Office Depot.

Customers “have a phone that is basically a super computer, and they will find it somewhere else” for less if they can, he said.

Companies offering web apps and in-store technologies will also have to grapple with keeping the new apps and systems working and up to date. That means ensuring that WiFi in stores works, and that terminals function.

Recent visits to a Staples store in New York City found that a kiosk set up to allow people to order online wasn’t functioning, and at a JCPenney store in the city, the Wifi didn’t work. Both companies said the problems encountered were unusual and that they have backup systems in place.

"Poorly executed plans can be worse than no mobile strategy at all," said Perry Kramer, vice president at Boston Retail Partners. "The dangers are losing those customers for the rest of the year or for a long time."

Read more at Reuters.

source: www.abs-cbnnews.com

'Target' closures in Canada shock Pinoy employees

CALGARY, Canada - American retail giant Target is shutting down its stores in Canada. The announcement came as a total shock to everyone, not only to customers but more so for Target employees.

Many Filipino workers who have been with Target since the start felt confused and lost when they learned the news.

A Target employee who did not want to identify himself to the public said they were told a few months ago that some non-performing stores might close down, but not every store in the country.

They were advised not to speak to media.

"As in, iyun ang future mo, iyun ang work mo tapos after five minutes I've been receiving calls, text na kamusta ka na? Anong nangyari sa iyo? I never replied to anyone because I was still in shock," the employee said.

He now plans to go back to school, upgrade his skills and at the same time look for a job but not in the retail sector anymore.

"I'm trying to get to a trade school to upgrade my credentials kasi I majored in electrical, so might as well use that and get into the construction business," he said.

With over $1.5 billion in losses, Target's failed business venture into the Canadian market has become an eye-opener for many American companies wanting to do business in the country.

A Pinay former nanny-turned-Target employee said the future is dim for the thousands who will lose their jobs.

"Nalungkot, tapos siyempre hindi lang mga Pilipino ang mawawalan ng trabaho pati ibang lahi din," she said.

She plans to study again and go back to the Philippines.

Target says, "Employees will receive a minimum of 16 weeks of compensation including wages and benefits coverage for employees who are not required for the full wind-down period."

Target's impending closure in Canada has left many people with an unsure future especially with the economic recession in this country.

source: www.abs-cbnnews.com

NFL teams bow to pressure on domestic abuse cases

 Another National Football League player was arrested on domestic violence allegations hours after two teams succumbed to public pressure and suspended players enmeshed in similar cases on Wednesday.

The charges against Arizona Cardinals running back Jonathan Dwyer of aggravated assault in connection with two alleged incidents of domestic violence in late July come amid intensifying criticism from corporate sponsors and politicians toward America's top sports league.

Earlier on Wednesday, Minnesota Vikings star running back Adrian Peterson and Carolina Panthers defensive end Greg Hardy were both placed by their teams on the so-called "exempt list," meaning they must take a leave of absence while the cases against them are resolved.

In announcing their actions, officials of both the Vikings and the Panthers talked about the need "to get this right."

The two teams' decisions suggest a new tack by owners toward the domestic violence scandal engulfing the 32-team NFL and its commissioner, Roger Goodell.

A flurry of cases, most notably those of Peterson and Ray Rice, the former Baltimore Ravens star who has also been suspended indefinitely by the NFL, has raised questions about the league's integrity and Goodell's leadership.

On Wednesday the level of criticism ratcheted up with the U.S. House of Representatives Democratic leader, Nancy Pelosi, speaking up, and moves by two big corporate sponsors - TD Ameritrade and Nike.

Zygi Wilf, who co-owns the Vikings with his brother, Mark, said that they had "made a mistake and we needed to get this right," after they had reactivated Peterson on Monday following his indictment last week on charges of beating his four-year-old son with a branch.

For the Panthers, general manager Dave Gettleman said the team was disappointed in Hardy's behavior. "We have to get this right. He has to get this right," Gettleman said.

Hardy, who was convicted in July of domestic violence, has appealed the verdict. He has a trial date in November.

Regarding Dwyer, the Phoenix Police Department said the incidents involved a 27-year-old woman and an 18-month-old child, but gave few details. In an email, Sergeant Trent Crump said Dwyer "admitted to the incidents, however, denied any physical assaults."

Crump said the 25-year-old player was booked into Maricopa County Jail on one count of aggravated assault causing a fracture, one count of aggravated assault involving a minor, two counts of criminal damage, one count of preventing the use of a phone in an emergency, and assault.

"Given the serious nature of the allegations we have taken the immediate step to deactivate Jonathan from all team activities," the Cardinals said in a statement.

The Cardinals said they became aware of the allegations on Wednesday afternoon when they were notified by Phoenix police and they said they are cooperating fully.

Crump said the two incidents were reported to police by neighbors who said they heard fights, and that soon afterward the woman fled the state with her and Dwyer's child, citing safety concerns for herself.

The victim reported her injuries to police on Sept. 11 and said she also received text messages from the player in which he threatened to kill himself, Crump said.

The moves came a day after the NFL was chastised by one of its top sponsors, brewer Anheuser-Busch. But no sponsor has gone so far as to cut its multimillion-dollar ties with the NFL.

Brokerage firm TD Ameritrade, which began a three-year affiliation with the NFL this month, on Wednesday said "it was very much considering its future" as a sponsor.

"We want to see (the NFL) learn from its mistakes and work quickly to improve a culture that values inclusion, safety and respect for its employees, their families and others," TD Ameritrade spokeswoman Kim Hillyer said in an email.

Nike, known for its steadfast support for its athletes even in troubled times, said it had suspended its contract with Peterson, one of the league's most marketable players.

Target Corp on Wednesday said it was removing Peterson merchandise from its retail stores and website in light of team's most recent actions and customer feedback, spokeswoman Molly Snyder said.

POLITICIANS JOIN FRAY

The 29-year-old Peterson, the Vikings' best player, has been accused of reckless or negligent injury to a child stemming from a whipping incident that allegedly left bruises and wounds on his son.

The NFL called his suspension "a good decision."

Goodell has the sole authority to place a player on the exempt list under what the league policy calls "unusual circumstances."

The Vikings will continue to pay the running back his full $11.75 million salary for this season. Team general manager Rick Spielman declined to say whether Peterson would play again this season. If Peterson's case goes to trial it would likely begin in 2015.

Mark Wilf said the franchise did not suspend Peterson in a bow to pressure from team sponsors. Minnesota-based hotel chain Radisson suspended a sponsorship deal with the Vikings on Monday.

The team also came under withering criticism from Minnesota Governor Mark Dayton, who said on Tuesday that Peterson was a "public embarrassment" to the team and state and should be suspended.

Goodell and the league are struggling to make amends for his initial lenient punishment of Rice, who punched his then-fiancee, now his wife, in February, knocking her unconscious.

Although Goodell has announced stricter penalties for domestic violence offenders, that has done little to stem the tidal wave of public criticism following the release of surveillance video last week that showed Rice's punch, which the league said it had never seen.

On Wednesday in Washington, top U.S. House Democrat Pelosi said Congress could get involved because the league, which takes in $9 billion in annual revenue, has an anti-trust exemption.

"I think Congress always has a role, but again if you're talking about anti-trust privileges and the rest of that, that certainly is a big issue and it cannot be done except by the Congress," Pelosi said at her weekly news conference in the Capitol, after being peppered with NFL questions.

Goodell has since apologized for the handling of the Rice case. The Pro Bowl running back on Tuesday appealed his indefinite suspension, which came after the video's publication.

With Rice, Peterson and Hardy all suspended, one player accused of domestic violence still remains eligible, San Francisco 49ers' Ray McDonald.

Pelosi, an avid 49ers fan, said McDonald should not have taken the field last week.

(Additional reporting by Steve Ginsburg, Ramkumar Iyer, Jed Horowitz, Richard Cowan and Sam Adams; Editing by Leslie Adler, Eric Walsh, Eric M. Johnson and Matt Driskill)

source: www.abs-cbnnews.com

Target Pushes Thanksgiving Day Opening Earlier, 8 p.m.

Target announced today it would be opening its doors at 8 p.m. on Thanksgiving Day to kick off its Black Friday deals, an hour earlier than it opened last year on Thanksgiving Day. The retailer will remain open until 11 p.m. on the Friday after Thanksgiving.

"For both our guests and team members, Black Friday is an exciting event that officially marks the beginning of the holiday shopping season," said Kathee Tesija, executive vice president of Merchandising and Supply Chain, in a press release. "By offering advance access to deals at Target.com and opening our stores earlier, we are making it easier for guests to build a Black Friday ritual that works for them."

Target joins a long list of retailers that have announced they will open earlier this year, including J.C. Penney, Kohl's, and Macy's, which will each open at 8 p.m., marking their first time opening on Thanksgiving Day. Kmart and Sears have each faced backlash, as they will open their doors at 6 a.m. and 8 a.m., respectively, on Thanksgiving Day. Best Buy will open on Thanksgiving beginning at 6 p.m. and will remain open until 10 p.m. on Friday. Last year it opened at midnight on Thanksgiving. "Last year customers clearly showed that they wanted to be out shopping much earlier on Thanksgiving," said Best Buy spokeswoman Amy von Walter in a statement. "Our plan this holiday is a direct result of that feedback and provides multiple opportunities for our customers to shop in-store and online, whether at 6 p.m., midnight or on Black Friday."


In addition to opening on Thursday evening, Target also announced it would be rolling out 15 online-only daily discounts each day beginning Sunday Nov. 24, the Sunday before Thanksgiving. The company highlighted that "on Thanksgiving Day, hundreds of Black Friday deals, including almost all in-store deals, will be available starting in the early morning hours at Target.com."

Target did highlight in its press release that its employees who work on holidays receive their pay at a rate equal to 1.5 times their hourly pay, and that those who work anytime beginning at 8 p.m. on Thanksgiving to 8 a.m. on Black Friday "will receive additional compensation on top of holiday premium pay."

-- Material from The Associated Press was used in this report.

The article Target Pushes Thanksgiving Day Opening Earlier, 8 p.m. originally appeared on Fool.com.

source: dailyfinance.com