RAPAPORT... Retailers may be breathing a little easier post Thanksgiving weekend, according to market researcher ShopperTrak RCT Corporation, after reporting a “very strong start” to the holiday shopping season.
ShopperTrak said in its National Retail Sales Estimate (NRSE) that retail sales grew 8.3 percent to $10.3 billion this Black Friday, compared to the same day in 2006.
"We anticipated that the 2007 trend would continue and consumers would be willing to spend despite all of the economic pressures we've been hearing about heading into the season," said Bill Martin, co-founder of ShopperTrak. "Although retailers need to remain cautious, the Black Friday outpouring should have them breathing a sigh of relief and they will be paying close attention to see if consumers continue this strong shopping pace throughout the holiday season."
ShopperTrak said retailers have reason to be optimistic as “consumers remained resilient and proved they were willing to spend despite rising oil prices and other economic pressures.”
Economists have forecast a slow holiday spending season after weak September and October sales signaled a downturn in the local economy. The National Retail Federation (NRF) is expecting sales growth of 4 percent in November-December, which would be the slowest increase seen in 5-years.
Recognizing the economic challenges facing shoppers, retailers stepped up their promotional activities this year and extended their trading hours on Black Friday to boost sales.
“Retailers knew they had to offer promotions enticing enough to get shoppers out of bed on a chilly day, and they delivered,” said Tracy Mullin, NRF's chief executive. “Though retailers are anticipating a challenging holiday season, they are encouraged by the enthusiasm that their Black Friday sales generated.”
NRF reported that the best Black Friday promotions were on electronics, jewelry, clothing, and toys.
“In addition to promotions on high-ticket items like high-definition televisions and diamond necklaces, retailers chose to highlight lower-priced merchandise like digital photo frames, hand mixers and sterling silver jewelry,” Mullin said. “While many of these items will remain popular during the holiday season, there is strong interest in them today simply because the prices are irresistible.”
Among the retailers extending trading hours on Friday, JCPenney and Kohl’s each opened their doors at 4 a.m.
JCPenney reported strong performances across all merchandise categories, including fine jewelry, outerwear, and young men's and children's assortments, the Associated Press reported. Nevertheless, the department store cautioned that it was still early days in the holiday season. “We are mindful of the headwinds consumers are facing,” JCPenney reported.
Black Friday was the busiest sales day of the 2006 season, and typically accounts for between 4.5 and 5 percent of all holiday sales, ShopperTrak said.
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