'Black Friday' deals may not signal retail comeback
Published on Mon, Nov 23, 2009 at 14:05 | Source : Reuters
Updated at Mon, Nov 23, 2009 at 14:32
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'Black Friday' deals may not signal retail comeback
When the US holiday shopping season kicks off on the day after Thanksgiving, retailers can expect to see millions of less frightened, but even more bargain-hungry customers cross their thresholds.
After last winter's bevy of deep discounts, many consumers will only open their wallets if they spot a bargain. Almost 70% of consumers surveyed by America's Research Group said they wanted to see discounts of at least 50% before they would buy something for the holidays.
"The range of the promotions will be different from what we've seen in recent years, because it has to be," said NRF spokeswoman Kathy Grannis. "Retailers know that consumers are so bargain focused and bargain conscious."
BDO Seidman's poll found that 96% of retailers planned to increase promotions and discounts this year.
"They are going to have to be creative," said Ted Vaughan, a partner in BDO Seidman's retail and consumer product practice.
Of course, fewer retailers are vying for that business. According to Bain & Co, 27 retailers went bankrupt in 2008 and 18 more have done so to date in 2009. Together, those chains used to account for about USD 25 billion to USD 30 billion in sales.
Earlier holiday-themed sales expanded the season this year and may make it easier for consumers who have less credit available, Vaughan said. Sears, Kmart and Toys R Us have also been touting layaway plans to help shoppers spread out spending.
Consumers flocking to stores may not be buying gifts. A Consumer Reports survey found that 66% of shoppers heading out over the weekend will be shopping for themselves.
