Black Friday merchants look to extend retail optimism in U.S.

NEW YORK • As Black Friday shoppers descend on stores this weekend, retailers are experiencing something that’s been in short supply: optimism.

Brick-and-mortar chains are coming off a generally positive earnings season, with companies such as seeing their shares reach record highs. Even the beleaguered department-store industry is finding reasons for hope. and its peers rallied earlier this month after giving an upbeat outlook.

Retailers are now taking that spirit into Black Friday weekend, which traditionally kicks off the holiday shopping season. While the event has lost some of its buzz in recent years — there will probably be smaller crowds and fewer shoppers fistfighting for big-screen TVs — stores aim to build on the momentum. Companies like have revamped their selection and staffed up in anticipation of a merrier Christmas.

“We’re in a much stronger position entering this season,” Target chief executive Brian Cornell said.

The National Retail Federation projects that about 164 million consumers — 69 per cent of Americans — will shop at stores or online over the long weekend that starts on Thanksgiving. Though Black Friday still has strong symbolism within the industry, consumers have become less loyal to the event’s promotions. Instead, they’re spending more of their holiday budgets before or after Thanksgiving.

Overall holiday spending is expected to climb as much as four per cent from last year, helped by low unemployment and rising home values. The purchases will amount to roughly US$680 billion in November and December, the Washington-based NRF estimates.

Retailers have been offering deals online and in stores all week, aiming to get a jump on Black Friday and cut through the noise. The early indications are positive, said Jerry Storch, head of Storch Advisors and the former CEO of Hudson’s Bay Co.

“The question will be, who’s going to win and who’s going to lose?” he said.

Plenty of major retailers continue to languish, and it’s hard to tell if the holidays will bring them much relief. Comparable sales — a key measure — plunged 17 per cent last quarter at Sears and 12 per cent at J. Crew stores.

of course, is poised to be one of the winners. The e-commerce giant recently overtook Wal-Mart as the top toy destination, helped by low prices, according to Jefferies LLC analyst Stephanie Wissink.

Amazon will account for about 44 per cent of U.S. retail e-commerce sales this year, making it the undisputed leader online, according to EMarketer Inc.

But internet sales represent less than 12 per cent of total holiday retail purchases, the research firm estimates.

Stores also are getting smarter about how they do sales and discounts, said