US shoppers defy economic blues at 'Black Friday' sales

25 Nov, 2007

Shoppers in the United States brushed off some gloomy economic forecasts and rushed into stores during the Thanksgiving Day weekend, kicking off one of the busiest US shopping periods of the year.
While economists have suggested this year's holiday season will likely see only a small increase in takings over last year due to weak consumer confidence, there was little sign of depressed sales on New York's streets.
"I was up at two-thirty this morning to shop," said Kim Melise, 22, a New Yorker who was struggling to get into Bloomingdale's department store with his arms already weighed down by bags of shopping. Melise was one of those taking advantage of the special offers, despite the threat of a looming recession and a crunch in the housing and credit markets.
While some sales staff reported less of a crush than last year, most said they had not noticed reduced takings at the sales registers, with many reporting increased demand from European buyers attracted by the weak dollar.
"We arrived yesterday, did all our shopping for Christmas and will be back home on Monday," said Rachel Brown, a 33-year-old from Wales shopping with a friend and struggling with a load of bargains. Les White, 51, from London, left one of the world's other great shopping capitals to visit the Big Apple with his wife.
Others came from nearby. Lisa left toy store FAO Schwartz clutching five bags. As in previous years, she arrived early in Manhattan from Long Island with her husband and two daughters to do their Christmas shopping.
The Friday after the Thanksgiving Day public holiday traditionally kicks off one of the busiest shopping periods of the year. It is known as "Black Friday," supposedly because of the bad traffic around the holiday period and because the day's takings signal the beginning of a period in which stores hope to go into credit - or into the black.
Up to 133 million shoppers were expected to hit US stores over the long weekend, with the National Retail Federation projecting a four percent rise in holiday spending, while Ernst & Young suggested growth of 4.5 percent.
"Retailers know that customers are looking for good values this holiday season and many will be offering prices and promotions that are too good to pass up," said National Retail Federation President Tracy Mullin.
"Black Friday" can turn out to be even more important this year as consumers who planned to shop that day were expected to spend 42 percent of their holiday budgets, compared with 36 percent last year, according to a Cowen & Co survey. By tradition, the rush for savings began even before sunrise. Retailer JCPenney opened its store as early as 4:00 am, an hour earlier than last year. The largest US clothing retailer Gap was not far behind, opening its Old Navy stores at 5:00 am. Toys "R" Us offered more than 100 toys at half-price from 5:00 am to noon. But some sales staff were cautious.

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