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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsBlack Friday Weekend Spending Drop Pressures U.S. Stores
By Matt Townsend - Dec 2, 2013
The first spending decline on a Black Friday weekend since 2009 reinforced projections for a lackluster holiday, increasing chances retailers will extend the deep discounts already hurting their profit margins.
Purchases at stores and websites fell 2.9 percent to $57.4 billion during the four days beginning with the Nov. 28 Thanksgiving holiday, according to a survey commissioned by the National Retail Federation. While 141 million people shopped, about 2 million more than last year, the average consumers spending dropped 3.9 percent to $407.02, the survey showed.
The survey results, if borne out at cash registers in American malls and on website checkout screens, herald retailers likely return to Black Friday-type discounts this week and suggest added stress for several chains. Wal-Mart Stores Inc. and Target Corp. already cut profit forecasts after tepid sales gains in back-to-school shopping.
Retailers didnt get what they wanted from Black Friday and they will need to make it up in the next three weeks, Poonam Goyal, an analyst for Bloomberg Industries, said in an interview. There will be some panic sales.
Target fell 0.6 percent to the equivalent of $63.56 in German trading today. Best-Buy Co. slipped 0.6 percent to the equivalent of $40.39, while Wal-Mart was unchanged at $81.01.
more...
http://www.bloomberg.com/news/2013-12-02/black-friday-weekend-spending-drop-pressures-u-s-stores.html
meti57b
(3,584 posts)If stores want good sales and profit...............they need customers who have the extra cash to make those purchases.
RC
(25,592 posts)Ever notice Papa John does his own commercials, with no one else in the commercial? Now that is cheap. Won't even pay his own employes to appear in his commercials.
KurtNYC
(14,549 posts)or it could be the credit crunch.
I'm going to guess credit is maxed out.
flamingdem
(39,313 posts)Many stores offered online deals and today is Cyber Monday so maybe that will show better results
Capt. Obvious
(9,002 posts)Orrex
(63,213 posts)Usually we have to wait until mid-December before the media starts blaming the middle class for killing the retail industry's Christmas cheer. We're two full weeks ahead of schedule!