U.S. buyers cautious on first day of Christmas shopping
Last Updated: Friday, November 28, 2008 | 3:29 PM ET
The Associated Press
Early bird shoppers cram the aisles at the Target store in Aurora, Ohio, on Friday. (Amy Sancetta/Associated Press)American shoppers who had snapped their wallets shut since September turned out in force Friday to grab deals on the traditional start of the holiday shopping season, but it was clear that worries about the economy tempered buying.
Preliminary reports from several major retailers including Macy's and Toys "R" Us said that crowds were at least as large as last year's, but many shoppers sounded notes of caution and concern.
Retailers extended their hours, some opening at midnight, and offered deals that were deeper and wider than the deep discounts that shoppers found throughout November.
Best Buy, which threw its doors open at 5 a.m., offered specials such as a 49-inch Panasonic plasma HDTV for $899.99 US and a $189.99 GPS device by Garmin. Toys "R" Us was offering up to 60 per cent discounts from 5 a.m. to 10 a.m.
But the excitement over the early-morning specials proved fatal for at least one store. Police from Nassau County, N.Y., say a Wal-Mart worker died after being trampled by a throng of unruly shoppers shortly after the Long Island store opened Friday. Wal-Mart officials would not confirm reports of stampede, but said a "medical emergency" caused them to close the store.
Ellen Davis, a spokeswoman at the National Retail Federation, the industry's largest retail group, said that she was "not aware of any other circumstances where a retail employee has died working on the day after Thanksgiving."
Hunt for bargains
Many consumers, clutching the store circulars, were focused on a few bargains Friday and said they were slashing their overall holiday budgets from a year ago as they juggle paying their rent and other bills while putting food on the table amid layoffs, tightening credit and dwindling retirement accounts.
Even for the growing number of parents who were limiting their gift buying to just their children this year, financial troubles were forcing them to be stingy.
"I have never slept here before to save a few bucks, but with the economy so bad, I thought that even a few dollars helps," said Analita Garcia of Falls Church, Va., who arrived at a local Best Buy store at 7 a.m. Thursday with 10 family members. She bought a 32-inch LCD TV for $400,down from $500, along with an iPod and several DVDs.
"This year, a lot of people I know won't be getting Christmas presents. I have to pay the rent and bills, and I have two little ones at home to think of," Garcia added.
At the Best Buy store in Syracuse, N.Y., a line snaked past stores and around walkways on the second floor of Carousel Center a few moments before the store's 5 a.m. opening about eight hours after some people near the front of the line had arrived.
Rob Schoeneck, the mall's manager, estimated about 1,000 people were waiting for the electronics store to open and said the crowd was about the same size as a year ago.
Inside, Kira Carinci, 33, a teacher from Cicero, N.Y., searched for the $80 Guitar Hero III: Legends of Rock video game and guitar controller bundle for her son, but said she is more concerned about money than she was last holiday season. She said she had set aside a certain amount for Christmas spending.
"I don't usually save, so this year is a little different," she said.
One thing on list
By 3:43 a.m., about 50 people had lined up in preparation for the 5 a.m. opening at a Wal-Mart store in Cary, N.C. Shannon Keane, 38, of Cary, who arrived with her son, Miles, 13, at midnight, said she was buying only one item today: an iPod for her son.
"He really wanted this one thing," Keane said. "So we're here for this one thing."
Keane, who was recently laid off from her job at an insurance company, said she was on a budget this year because her unemployment cheques were also helping support family in Colorado.
"I really can't focus on gifts," she said. "I have to focus more on helping them pay their bills. It's hard," she said of being a single mom on a small income. "I've always filled the tree. But you have to be honest. This year, I'll do the best I can."
Joyce and Kevin Kirk of Georgetown in southwest Ohio, who arrived at Kohl's at Eastgate Mall in suburban Cincinnati, at 4 a.m. Friday, bought toys for the baby and clothing for her older children, mostly at 50 per cent to 60 per cent off.
She said they decided to focus more on the kids this year and cut down on gifts for other people. Her husband, a construction worker, wasn't getting enough work at his company and recently switched to another company.
"We just can't do as much this year because of the economy," said Joyce Kirk, who aims to cut her holiday budget to $1,000. She usually spent $3,000 to $4,000 on Christmas gifts.
Black Friday usually good for retailers
The day after U.S. Thanksgiving is known as Black Friday the name refers to the day when a surge of shoppers traditionally help stores break into profitability for the full year.
But this year, with rampant promotions of up to 70 per cent throughout the month including even at luxury stores like Saks Fifth Avenue amid a deteriorating economy, the power of this landmark day for the retail industry could be fading.
Still, while it isn't a predictor of holiday sales, the day after Thanksgiving is an important barometer of people's willingness to spend for the rest of the season. And particularly this year, analysts will dissect how the economy is shaping buying habits in a season that many analysts predict could see a contraction in spending from a year ago.
Last year, the Thanksgiving shopping weekend of Friday through Sunday accounted for about 10 per cent of overall holiday sales, according to ShopperTrak RCT Corp.
