According to ShopperTrak - the world’s foremost provider of shopper traffic counting information, technology and decision support software for businesses in the retail, gaming, hospitality and entertainment industries – Black Friday sales were up 3 percent this year over 2007.
That’s right. With all of the news coverage about bailouts, mortgage failures, bankruptcy filings, and financial devastation – Americans spent 3 percent more this year than they did last year.
Here’s the full press release from ShopperTrack -
CHICAGO – November 29, 2008 – Despite a lagging economy that has left the retail industry collectively holding its breath, ShopperTrak RCT today reported the holiday shopping season got off to a healthy start as GAFO retail sales increased 3.0 percent over 2007 – a day which increased more than 8.0 percent from Black Friday 2006. Preliminary sales estimated at a daily rate for Black Friday totaled $10.6 billion or $10,606 million.
While ShopperTrak warns that Black Friday isn’t always the best indicator for holiday season performance, retailers should be cautiously optimistic as deep discounts drove consumers en masse to various retail locations to spend – despite myriad economic pressures seen over the last two months.
“Retailers truly experienced what we’ve dubbed the ‘perfect storm’ over the last few weeks, with the financial markets melting down, the presidential election which typically slows retail traffic and relatively high gasoline prices – all of which slowed both retail traffic and spending,” said Bill Martin, co-founder of ShopperTrak. “Under these circumstances, to start off the season in this fashion is truly amazing and is a testament to the resiliency of the American consumer, and undeniably proves a willingness to spend.”
Retail traffic was heavy throughout the country as shoppers responded to early openings and numerous door buster specials and sales promotions. Regionally, the South lead the way with a 3.4 percent rise over 2007, with the Midwest (+3.0 percent), West (+2.7 percent) and Northeast (+2.6 percent) closely following.
“While this is an encouraging start for retailers, there’s no guarantee these deep discounts will continue after Black Friday weekend, which could slow spending,” said Mr. Martin. “Additionally, consumers have just 27 days to shop this year as opposed to 32 in 2007, which may catch some procrastinating consumers off guard, leading to lower sales levels.” Martin continued: “Needless to say, retailers will be closely watching this trend and most likely adjust as needed heading into the annually strong Saturday before Christmas, or Super Saturday.
Information supplied by the National Retail Sales Estimate (NRSE), Retail Traffic Index (SRTI) and ShopperTrak RCT Corporation.
Here’s the part of this article that bothers me, just a bit -
“Retailers truly experienced what we’ve dubbed the ‘perfect storm’ over the last few weeks, with the financial markets melting down, the presidential election which typically slows retail traffic and relatively high gasoline prices – all of which slowed both retail traffic and spending,” said Bill Martin, co-founder of ShopperTrak. “Under these circumstances, to start off the season in this fashion is truly amazing and is a testament to the resiliency of the American consumer, and undeniably proves a willingness to spend.”
I have to tell you, this reports bothers me, just a bit. Sure, I’m happy that the economy (might) be in a little better shape than we have been led to believe, but if people are struggling, shouldn’t we all be spending less and not more?
What do you think? Is this a good thing and a sign of a recovery? Or, do you think that people flooded the stores, bought as much as they could for as little as possible, and the rest of the holiday shopping numbers will be down? Or, are people simply ignoring the current financial crisis and choosing to shop, shop, shop? What about you and yours? Are you cutting back? Are you buying less? Are you buying more?
Personally, I’d love to see people adopt lifestyles that were a bit more frugal. I realize that moving towards a more frugal society will hurt in the short-term, but imagine the long-term benefits. My wife and I, wanting to add a bit more to our non-retirement savings, have decided to reduce Christmas spending by about 25%.
March 16th, 2009 
NCN 
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