In the famous words of Gomer Pyle, USMC..."Surprise! Surprise! Surprise!" Black Friday, which is the dubious name given to the mad holiday sales rush that happens the day after Thanksgiving Day in the United States, turned out to be a surprising success for US retailers.
Same store sales year over year, grew 8.3% or roughly 10.3 billion dollars. Analysts had expected no more than a 5% up tick. Sales of e-goods lead the way with discounters such as Wal*Mart offering sales on big screen televisions among other things.
I have to admit...I am surprised. With US and global economies stressed by war, lower dollar values, higher oil prices and a peak shipping season that was somewhat less than projected, it seemed as if this holiday season might be flat. It still could turn out that way. Our own household spent money this weekend on specific items, but we still have more to buy. The next bit to come will be on-line purchases for out of town deliveries to relatives. That will happen next week. My wife will of course continue ninja assassin attacks on unwary retailers throughout the season. What I have noted is that shoppers are being very targeted about what they buy, where they go and the amount of research they are doing before purchasing. More pointed "hunting" and less "grazing" at the mall. That is a good thing if you are a man. "In and out" of the Mall is always a good thing.
Black Friday 2007 portends a good holiday season for retailers, but a hockey stick effect could occur with frantic last minute buying. I still think many Americans will buy gifts but spend less this year. Retailers will react with higher discounts and extended hours. That heating bill in the Northeast US this year is going to be a big one.
Eric
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