The Herald Bulletin

Morning Update

Nation & World

December 1, 2013

Record crowds over weekend, but spending declined

NEW YORK — Did stores shoot themselves in the foot?

Target, Macy's and other retailers offered holiday discounts in early November and opened stores on Thanksgiving Day. It was an effort to attract shoppers before Black Friday, the day after Thanksgiving that traditionally kicks off the holiday shopping season.

Those tactics drew bigger crowds, but failed to motivate Americans to spend.

A record 141 million people are expected to shop in stores and online over the four-day Thanksgiving weekend that ends Sunday, up from last year's 137 million, according to the results of a survey of nearly 4,500 shoppers conducted for The National Retail Federation.

But total spending is expected to fall for the first time ever since the trade group began tracking it in 2006, according to the survey that was released on Sunday. Over the four days, spending fell an estimated 2.9 percent to $57.4 billion.

Shoppers, on average, are expected to spend $407.02 during the four days, down 3.9 percent from last year. That would be the first decline since the 2009 holiday shopping season when the economy was just coming out of the recession.

The survey underscores the challenges stores have faced since the recession began in late 2007. Retailers had to offer deep discounts to get people to shop during the downturn, but Americans still expect those "70 percent off" signs now during the uneven economic recovery.

Stores may have only exacerbated that expectation this year. By offering bargains earlier in the season, it seems they've created a vicious cycle in which they'll need to constantly offer bigger sales to get people to spend. That's because shoppers who took advantage of "holiday" deals before Thanksgiving may have deal fatigue and are cautious about buying anything else unless it's heavily discounted.

"The economy spoke loud and clear over the past few days," said Brian Sozzi, CEO and chief equities strategist at Belus Capital Advisors. "We are going to see an increase in markdowns."

Matthew Shay, president and CEO of The National Retail Federation, said that the survey results only represent one extended weekend in what is typically the biggest shopping period of the year. The combined months of November and December can account for up to 40 percent of retailers' revenue.

Overall, Shay said the trade group still expects sales for the combined two months to increase 3.9 percent to $602.1 billion. That's higher than the 3.5 percent pace in the previous year.

But to achieve that growth, retailers will likely have to offer big sales events. In a stronger economy, people who shopped early would continue to do so throughout the season. But analysts say that's not likely to be the case in this still tough economic climate.

"It's pretty clear that in the current environment, customers expect promotions," Shay said. "Absent promotions, they're not really spending."

Take Tuesday Trasvina, 37, who said she's been bombarded with holiday discounts since early November. Trasvina, a marketing coordinator, plans to spend $500 on holiday gifts, about a quarter of what she spent last year.

"They've been stretching out this Black Friday thing so long," said Trasvina, who was shopping with her husband on Friday at a Target store in Portland, Ore. "I just think the over-commercialization of the holiday has gotten to us."

At least a dozen major retailers — most of them for the first time — opened on Thanksgiving instead of on Black Friday, which is typically the biggest shopping day of the year. Wal-Mart, Toys R Us and other retailers said on Friday that Thanksgiving crowds were strong.

But the early start appeared to pull sales forward. Black Friday sales fell 13.2 percent from the previous year to $9.74 billion, according to Chicago-based technology firm ShopperTrak. But combined spending over Thanksgiving and Black Friday rose 2.3 percent to $12.3 billion compared with a year ago.

A Kmart store in New York City that opened at 6 a.m. on Thanksgiving and stayed open for 41 hour straight was packed on the holiday. Clothing was marked down 30 percent to 50 percent.

Adriana Tavaraz, 51, headed there at about 4 p.m. and spent $105 on ornaments, Santa hats and other holiday decor. She saved about 50 percent.

But it's not likely Tavaraz will be back in stores too many more times this season. Money is tight this year because of rising costs for food and rent, and Tavaraz already spent much of her $200 holiday budget.

"Nowadays, you have to think about what you spend," she said. "You have to think about tomorrow."

____

 

1
Text Only
Nation & World
  • Beautiful Bulldogs.jpg Lucey is tops in Iowa's 'Beautiful Bulldog' event

    Lucey is a slobbering 18-month-old pooch whose human family dreams of making her a therapy dog.

    April 23, 2014 1 Photo

  • Sherpas leave Everest; some expeditions nix climbs

    Sherpa guides packed up their tents and left Mount Everest's base camp Wednesday in an unprecedented walkout to honor 16 of their colleagues who were killed last week in the deadliest avalanche ever recorded on the mountain, climbers said.

    April 23, 2014

  • FBI investigates suspected serial child molester

    The FBI asked for the public's help Tuesday to identify at least 90 potential victims of a suspected child predator who worked at 10 American and other international schools abroad for more than four decades before committing suicide last month in Minnesota.

    April 22, 2014

  • Australia signals deeper search for Malaysian jet

    Australia may use more powerful sonar equipment that can delve deeper beneath the Indian Ocean in the hunt for the missing Malaysia Airlines jet as the prime minister said Wednesday that failure to find any clue in the most likely crash site would not spell the end of the search.

    April 22, 2014

  • Tech boom presents new wrinkles for Wrigley Field

    During a recent game at Wrigley Field, John Weber was using a pencil and scorecard to expertly track the game between his hometown Cubs and the Pittsburgh Pirates. The 86-year-old retired transit worker figures he is an increasingly rare kind of baseball fan.

    April 22, 2014

  • Comcast 1Q earns surge on upbeat NBC results

    Comcast Corp. said Tuesday that its first-quarter net income rose by 30 percent as ad revenue surged at broadcast network NBC, helped by the Winter Olympics in Sochi and Jimmy Fallon's elevation as host of "The Tonight Show."

    April 22, 2014

  • General Motors seeks more protection from suits

     General Motors Co. has filed suit in a U.S. bankruptcy court asking a judge to protect the company from legal claims for actions that took place before it emerged from bankruptcy in 2009.

    April 22, 2014

  • Disney's 'It's a Small World' turns 50 The timeless Disney tune "It's a Small World" that wafts through our memories from past theme park vacations turns 50 this year.

    April 21, 2014

  • Teen OK after riding in wheel well of Hawaii jet

    Officials say a 16-year-old boy is "lucky to be alive" and unharmed after flying from California to Hawaii stowed away in a plane's wheel well, surviving cold temperatures at 38,000 feet and a lack of oxygen.

    April 21, 2014

  • In show of defiance, thousands run Boston Marathon

    Under heavy security that included a battery of surveillance cameras and police officers on rooftops, nearly 36,000 runners hit the streets Monday in the first Boston Marathon since last year's deadly bombing, sending a powerful message of resilience.

    April 21, 2014

More Resources from The Herald Bulletin
AP Video
Bon Jovi Helps Open Low-income Housing in Philly Pipeline Opponents Protest on National Mall Hagel Gets Preview of New High-tech Projects S.C. Man Apologizes for Naked Walk in Wal-Mart New Country Music Hall of Fame Inductees Named 'Piles' of Bodies in South Sudan Slaughter New Yorkers Celebrate Cherry Blossom Blooms SCOTUS Hears Tv-over-Internet Case Justice Dept. Broadening Criteria for Clemency Chief Mate: Crew Told to Escape After Passengers 'Miss Meadows' Takes Holmes Back to Her Roots Biden: Russia Must Stop Talking, Start Acting David Moyes Out As Manchester United Manager Raw: Leopard Bites Man in India Iowa College Finds Beauty in Bulldogs High Court to Hear Dispute of TV Over Internet Stowaway Teen Forces Review of Airport Security
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium