Black Friday leaks into rest of November
The annual shopping frenzy the day after Thanksgiving, pivotal for retailers, has become so competitive that retailers are offering Christmas deals earlier and earlier, turning Black Friday into Black November.
The busiest retail shopping day of the year is encroaching on Turkey Day even more this year in an aggressive push by retailers to grab their shares of consumer dollars. Traditionally, Black Friday is when retailers begin to move out of the red ink and become profitable for the year.
The National Retail Federation predicts sales in November and December will reach $616.9 billion, a 4.1 percent increase compared to last year.
“The current environment is a competitive environment for the retailers,” said Steven Barr, retail and consumer leader for Price water house Coopers LLP. “For the retailers to capture their share of the holiday wallet, they’re having to open their doors earlier and offer promotions earlier than they have historically.”
The entire month of November has been added to the Christmas shopping season as retailers try to capture their share of consumer spending traditionally done in December, Barr said.
“This holiday has become as competitive as any … we can remember,” he said.
Deals that attract shoppers on Black Friday and Cyber Monday — a day promoted by online retailers to increase Internet shopping — are as important as ever. “However, the month of November is becoming as important as December,” Barr said.
Some stores are pushing back, and in what some analysts are calling a marketing move, are promoting the fact that they refuse to open Thanksgiving so their employees can take the day off to be with family.
“I do think retailers, the ones that aren’t opening and are suggesting that they want employees to be with their families — I think that’s absolutely genuine,” said Jason Coronado, partner and retail tax expert at Deloitte LLP. “I think that’s also another way to get their name out. It creates some buzz.”
Wal-Mart Stores Inc. and Target Corp., are both offering specials throughout November and opening on Thanksgiving. Stores that won’t open Thursday include Costco, Nordstrom, T.J. Maxx and Dillard’s Inc.
“We are remaining closed on Thanksgiving in honor
of respecting our associates’ and customers’ time with their families,” said Julie Bull, spokesman for Little Rockbased Dillard’s, which opens its stores at 8 a.m. Friday.
A spokesman for TJX, the parent company of discount retailers T.J. Maxx and Marshalls, said in a statement, “We consider ourselves an Associate-friendly Company, and, we are pleased to give our Associates the time to enjoy the Thanksgiving holiday with family and friends.”
About 21 percent of consumers are expected to do their Christmas shopping from early November through Thanksgiving, according to Price water house Coopers’ 2014 Holiday Outlook report.
The same number of shoppers are expected to visit stores on Black Friday weekend, and 50 percent of consumers will hit the stores between Thanksgiving and Christmas, the report said.
Barr said retailers are also having to offer better deals more frequently because consumers have less disposable income to spend during the Christmas shopping season.
The average household will only spend about $684 this Christmas, down from $735 in 2013 as economic conditions weigh on consumer spending, according to Price water house Coopers.
Consumers will benefit from lower prices, Barr said.
“It’s a very good time to be a consumer,” he said.