Black Friday deals ‘lure’ US shoppers
Biggest sales gains online
NEW YORK/PITTSBURGH, Nov 24, (RTRS): US shoppers formed long lines at store checkout counters on Black Friday to snap up deep discounts on clothing and electronics, offering evidence that a healthy economy and rising wages are translating into stronger consumer spending at the start of retailers’ makeor-break holiday season.
“I am spending more, the mood generally is more upbeat,” said Sharon Neidert, 57, visiting New York City from Ohio. “My daughter moved out this year so I have more disposable income,” said Neidert, a manager at a software company.
While online sales were up substantially and traffic looked healthy at stores offering discounts, 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 US department stores Macy’s Inc, Kohl’s Corp, J.C. Penney Co Inc and Target Corp were all down between 1 and 3 percent on Friday and weighed on the broader S&P 500 retailing index, down 0.15 percent.
Investors are concerned that retail 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 were some of the top gainers, rising between 0.5 to 3 percent.
Shoppers spent $643 million online by 10 a.m. ET on Black Friday, with smartphone sales lifting overall online spending by 28 percent from a year ago, according to Adobe Analytics, which tracks transactions at 80 of the top 100 US online retailers.
Online spending is on track to hit $6.4 billion on Friday, which is likely to either match or surpass last year’s Cyber Monday revenue of $6.6 billion, 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 November and December 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 five years.
About 38 percent of American consumers plan to shop on Black Friday, and six in 10 expect to make at least half of their holiday purchases on that day, a Reuters/Ipsos poll showed last week.
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.
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.
Midtown Comics was taking 25 percent off everything at its Manhattan locations until noon.
An Eddie Bauer in Chicago offered 50 percent off all items.
At a Chicago-area Pandora, which makes 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 before coming back up.
A shopper pushes a large TV out of a Best Buy on Black Friday in Aurora, Colorado on Nov 23, 2018. Black Friday, the day after the US holiday of Thanksgiving, marks the beginning of the holiday shopping season with retailers offering significant savings through special one-day sales. (AFP)