Retailers Seeing Green on Black Friday Weekend

Several predictions for the 2010 Black Friday weekend came true! 

1. There were more shoppers in stores and visiting websites over this Black Friday weekend 
2. More money was spent than a year ago  
3. Shoppers purchased more fun gifts (jewelry) instead of practical gifts (coffee makers)  

But hold on! Black Friday 2010 weekend looked good, but consumers are still concerned with the economy, so retailers are urged to continue their low pricing and can't-pass-up offers.

"As retailers look ahead to the first few weeks of December, it will be important for them to keep momentum going with savings and incentives that holiday shoppers simply can't pass up."

Matthew Shay, NRF President and CEO

By The Numbers...

• 212 million shoppers visited stores and websites over Black Friday weekend, up from 195 million last year
• The average shopper this weekend spent $365.34, up fro last year's $343.31
• Total spending reached an estimated $45 billion
• The number of people who shop on Thanksgiving day, both online and in stores, has doubled over the past five years, from 10.3 million in 2005 to 22.3 million in 2010

Consumers clad in PJs visited stores earlier than ever

• The number of people who began their Black Friday shopping at midnight tripled this year from 3.3% last year to 9.5% in 201
• By 4 a.m. 24% of Black Friday shoppers were already in stores

Some purchasing highlights

• The number of people who purchased jewelry over the weekend rose from 11.7% last year to 14.3% this year
• Gift cards rose from 21.2% last year to 24.7% 
• Toys came back from 32.2% to 33.6%
• Books and electronics rose from 40.3 last year to 42.1%

Department stores saw increase in traffic
Both department stores (52% this year vs. 49.4% last year) and clothing stores (24.4% vs. 22.9%) saw an increase in traffic while the percentage of people who shopped at discounters declined 7.2% from 43.2% last year to 40.3% this year

Retailers paid more attention to online deals, and shoppers responded
The percentage of people who shopped online this weekend rose 15.2% from 28.5% last year to 33.6% this year

Image: Simon Howden/freedigitalphotos.net 

Sources
NRF: Black Friday Weekend Sees Bigger Crowds, $45 Billion in Spending, nrf.com, 11/28/10

Frighteningly Empty Stores for Halloween, or a Bewitching Economic Rebound?

About 148 million Americans are expected to partake in some sort of Halloween celebration, and according to National Retail Federation's Halloween Consumer Intentions and Actions Survey, people will be spending considerably more than they did last year, perhaps even back up to the levels of 2008. That being said, 30% of consumers say that the condition of the U.S. economy will still influence their Halloween plans. Total spending for the holiday is expected to reach $5.8 billion.
For some people Halloween is not an "all-out" spending holiday, with people doing the same thing from year-to-year regardless of the economy, certain spending boundaries remaining of course. Costumes appear to be where the most money is spent, and is not necessarily affected by economic circumstances while  decorations don't really come in to play regarding the economy. The state of the economy seems mainly to affect those throwing a party, forcing people to pull back on certain provisions.


Costumes - clearly the crux of the holiday
Consumers are expected to spend $23.37 per person on costumes this year
Spending on costumes might be the least economically affected aspect of Halloween this year, which seems to demonstrate that costumes are the nucleus of the holiday. While parents probably don't want to spend a ton of money on a costume their child will most likely wear only for one night, parents might pay anywhere from $10 at Sam's Club to $50 or $60 at Target or a Halloween pop-up store.

Married couples without children might spend $40 or $50 on an outfit, but they may recycle one or two pieces for an outfit the following year. Younger folks just out of college will head to thrift stores such as Goodwill or even look for accent items in their closet. Overall, costumes seem to dominate people's wallets with minor thought to economic conditions.

In fact, of those from NRF's survey:

• 40.1% of consumers are planning to wear a costume, up from 33.4% last year
• 69.4% of 18-24 year olds say they will dress up, the highest of any other age group

Decorations - reuse and recycle
Consumers are expected to spend $18.66 on decorations this year and 50.1% of consumers will decorate their home or yard
Halloween decorations seem to be something people don't buy every year, unlike Christmas where maybe new ornaments or bulbs are purchased yearly for a tree; therefore decorations don't appear to be a factor when people consider what or if they are going to cut back on in terms of spending for Halloween.

Some might bargain shop for decorations or pick up one or two new inexpensive items if they happen to see it in a store (like Target or Big Lots), while others might use what they have accumulated over the years. Some people agree that decorations can get expensive and money is better spent on costumes or parties.


Halloween Parties - I wanna party like it's 2008
Halloween parties might be the most affected aspect, in terms of spending, regarding the state of the economy. Perhaps those who went big the previous year, particularly purchasing alcohol, might scale back and instead have a BYOB party. Economic conditions may not completely stall someone from throwing a party, but it might be a more prominent factor from year-to-year.

NRF's survey revealed:

• 33.3% of people will attend or throw a party
• 55.4% of young adults are more likely than any other age group to throw or attend a party

Still Cutting Back
Although some say their Halloween spending will not change, or perhaps they will cut back on one or two aspects, 86.8% of those surveyed said they will spend less overall.

In addition...

• 45.1% will be buying less candy
• 30.7% will be using last year's decorations and not buying new ones
• 18.5% will be using last year's costume
• 19.5% will be making a costume

While some of those in NRF's survey say they will be loosening their wallets, there are still those who will continue to watch their spending. Perhaps this holiday season will be filled with cautious optimism where some party-goers and throwers will pinch their pennies where they can.

Image: Simon Howden/freedigitalphotos.net

Sources:
After Spooky 2009, Halloween Spending Bounces Back to '08 Levels, According to NRF, nrf.com, 9/23/10

Uh-Oh: Frugality Is the New Reality For BTS Shoppers

Early predictions about the 2009 Back to school shopping season are starting to make their way into the media. And it's not looking good for retailers.

Most parents of kids K-12 say they will cut back in spending this year due to the economy and the increased frugality that is becoming more of the shopping norm. NRF’s 2009 Back to School Consumer Intentions and Actions Survey (conducted by Columbus’ own BIGresearch) is showing a decline of 7.7% from BTS 2008 spending. The only spending this is expected to increase? Electronics, which is expected to increase by 11% as the prices of computers continue to become more affordable.

An unexpected benefactor to this upcoming BTS season may be drug stores (like Walgreens, CVS, et al.) where more people than last year are expected to shop these stores for BTS. Why? Drugs stores have expanded their merchandise mix, and customers have noticed. However, the most popular destination for BTS shopping is still the discount store. Almost 75% of shoppers will be shopping discount.

On the other side of the education spectrum – College spending is expected to increase slightly over last year (up 3%) however, fewer people are planning to attend college for advanced degrees so total spending is down. In addition, more kids are planning on living out their college years at home instead of on-campus, which may impact retailers that focus on the Back to dorm segment.

What does this mean for retailers? Time to embrace the new norm if you haven’t already. Give consumers what they are looking for: coupons, sales, BOGOs, and early season specials.

[photo: freedigitalphotos.net]