Retailers prepare for Black Friday
By SUZETTE PORTER
Article published on Tuesday, Nov. 21, 2006  |
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| Photo by TOM GERMOND |
| The average shopper is expected to spend nearly $800 this year on holiday merchandise, according to the National Retail Federation. |
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Kids and Santa aren’t the only ones making wish lists for Christmas 2006.
Retailers everywhere are gearing up for the biggest shopping days of the year – and they’re checking their lists twice to make sure they’ll have plenty of what shoppers will want.
Once upon a time, retailers counted on one day, Black Friday, to make up for any losses encountered during the year. Now, thanks to the Internet, merchants with online shopping sites have two chances to boost sales with the addition of Cyber Monday.
Black Friday is the day after Thanksgiving. According to all the stories, the day was given the name, Black Friday, because retail stores often operated in the red up until the day after Thanksgiving when shoppers made enough purchases to push their sales into the black.
Cyber Monday is the Monday following Thanksgiving. It’s a relatively new bonus for retailers to grab even more profits through online sales. Online retailers have discovered in recent years that many shoppers either don’t have time to take advantage of Black Friday sales, prefer to avoid the crowds or they don’t find what they’re looking for over the weekend.
Much to the dismay of employers, studies show that many employees spend Cyber Monday shopping online while they work.
According to the National Retail Federation, the average shopper is expected to spend nearly $800 this year on holiday merchandise. NRF continues to forecast that holiday sales will increase 5 percent this year to $457.4 billion.
The 2006 Holiday Consumer Intentions and Actions Survey conducted by BIGresearch for the NRF, found that the average consumer plans to spend $791 this year, up from $738 last year.
The survey also found that shoppers plan to spend an additional $99 for gifts for themselves.
“With gas prices coming down and consumer sentiment on the rise, shoppers want to celebrate the holidays in style,” said NRF President and CEO Tracy Mullin. “Retailers will be sure to give consumers a reason to spend their extra disposable income in the stores with enticing incentives and special promotions.”
The average person plans to spend $451 on family, about $86 on friends, $22 on coworkers and another $45 on people such as clergy, teachers and babysitters, according to the survey.
Florists and businesses that sell decorations can expect to see more business this year. The survey showed that people planned to increase spending in both categories. The survey also showed that people plan to spend $91 on candy and about $31 on greeting cards and postage.
People surveyed indicated that they plan to shop at a variety of stores. Most, 70 percent, said they would buy from discount stores. Specialty stores were on the list for 48 percent, while 49 percent planned to shop at grocery stores, 21 percent at drug stores and 21 percent at crafts or fabrics stores.
Almost half, or 47 percent, said they plan to shop online this year, up from 36 percent three years ago.
According to the survey, about 62 percent of shoppers plan to shop at department stores, up from 53 percent in 2003. The numbers showed that 79 percent of young adults, ages 18 to 24, plan to shop at department stores, up from 72.9 percent in 2005 and 65.9 percent in 2004.
“Young adults see the holiday season as a time to splurge, not skimp, on gifts for loved ones,” said Phil Rist, vice president of Strategy for BIGresearch. “Department stores are likely to see a surge in sales from young consumers, positioning them well not only for the holiday season but for years to come.”
Consumers’ personal wish lists, according to the survey, include clothing and accessories, 53 percent, and books, CD, DVDs, videos and video games, 55 percent. Gift cards also continue in popularity, with almost 53 percent of those surveyed saying they would to receive a gift card this year.
The survey showed that low prices, sales and discounts make a difference in where they shop for gifts; consumers also said that factors such as customer service, product quality and selection are important. Shoppers also said they choose stores with convenient locations.
Although retailers are gearing up for Black Friday, the survey showed that 40 percent of consumers planned to begin their holiday shopping early this year – before Halloween.
The NRF 2006 Holiday Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the winter holidays. The consumer poll has a margin of error of plus or minus 1.0 percent.
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Article published on Tuesday, Nov. 21, 2006
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