Consumers have voiced increasing optimism in recent months as employment rises and their home values (finally) go up, or at least stabilize, even as government talks about taxes and spending remain at an impasse. Bargain hunters put that upbeat mood into action on Thursday night and the wee hours of Friday morning at department and discount stores around the country.
Shoppers stood in line Friday for the 7 a.m. opening of Sam’s Club in Eagan, Minn., enduring freezing temperatures and biting winds, and clinging to free Starbuck’s Holiday Blend coffee as they collected vouchers for laptops and big-screen TVs.
“I didn’t even want it,” Meshia Flood, 36, a student from nearby Eagan, told a worker standing near the exit, referring to the 40-inch Sanyo LED TV on her cart. She and her 13-year-old daughter had come for a 96-cent Samsung Galaxy S III smartphone, but did not snag one before they disappeared minutes after opening.
Hundreds to thousands of consumers lined up outside Sears, Target, Macy’s, Old Navy and other retailers offering time-sensitive deals. Some turned up Thursday night for newly extended hours that some merchants have been experimenting with.
Bryan Everett, Target’s senior vice president for stores, said that Target’s decision to open at 9 p.m. on Thursday rather than midnight meant that there were more families in the store, and that customers stayed longer.
“Usually, it’s just a parent with a child, or mom and dad, or just a single guest in the store,” he said. “This year, we were seeing four- to five-person families.”
As a result, he said, customers stayed longer, and there was more “cross shopping.” Usually the Black Friday shoppers make a beeline for the electronics and toys, he said, but this year in addition to the surge in big-screen LCD TVs, iPads, iPods and Xboxes “we saw a nice pattern of shopping in the apparel and home departments.” Children’s pajamas, blankets, sheet sets, pillows and scarves all did particularly well.
The official sales numbers will not be reported for a few days, but analysts are expecting a strong sales day, with results comparable with last year’s gain of about 3 percent, according to MasterCard Advisors SpendingPulse, which is a metric for total American retail sales across all payment forms, including cash and check. The earlier hours from a few select chains seem unlikely to increase the size of the spending pie, but they may reapportion it.
“Black Friday has always been and always will be about being first: first to open, first to price, first to offer that special item,” said Michael Brown, a partner in the retail practice of A. T. Kearney, a global management consulting firm.
He said the race to open earlier and earlier would probably continue in coming years, although there was some question about how early was too early. Some Midtown Manhattan stores that were open at midday on Thursday did not seem to get blockbuster traffic, at least compared with the postdinner doorbusters.
In addition to longer hours, stores also experimented with ways to slow the creep of online competitors onto their turf and prevent consumers from using brick-and-mortar locations as showrooms for the goods they planned to purchase online.
Best Buy, Target, Fry’s Electronics and Staples all agreed to match prices with at least some online competitors. Physical stores may also benefit from decisions by some states to force online retailers to pay sales taxes. That is chipping away at the pricing edge of some major companies like Amazon.com, according to Nelson Granados, an assistant professor at the Graziadio School of Business and Management at Pepperdine University.
Reporting was contributed by Christina Capecchi from Eagan, Minn.; Christopher Maag from Columbus, Ohio; Cindy Wolff from Memphis; and Rebecca Fairley Raney from Upland, Calif.
Article source: http://www.nytimes.com/2012/11/24/business/rising-consumer-optimism-fuels-an-annual-spree.html?partner=rss&emc=rss
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