Holiday shopping off to higher start; Online sales reported up 2%, modest gain in stores

[DeepModem Mom]

Source: CNNMoney

Early indications pointed to slightly higher sales, both online and at stores, as the crucial holiday shopping season kicked off this weekend in the midst of a major economic downturn.

Online, initial returns showed a 2% gain in combined Thanksgiving Day-Black Friday sales from last year, according to figures from research firm comScore released Sunday. The firm said sales were up 6% on Thanksgiving, to $288 million, while sales rose 1% on Friday to $534 million.

Underscoring how difficult the economic climate is, comScore said online sales for the first 28 days of November - the start of the two-month holiday season - were down 4% to $10.4 billion.

ShopperTrak RCT, a retail industry research firm, said Saturday that total Black Friday sales rose 3% this year, to about $10.6 billion nationwide. Bill Martin, the firm's co-founder, said that given the headwinds facing the nation's merchants - a troubled economy, the traditional weakness in a presidential election year and the aftermath of the summer's record gas prices - the first day was pretty positive....He credited deep discounting for a lot of the sales increases...

Read more: http://money.cnn.com/2008/11/30/news/economy/holiday_shopping_sun/index.htm?cnn=yes

[MercutioATC]

1. Notice, SALES rose, not profits.

That's a direct result of the deeper discounting this year.

Even though sales were up, profits may very well be down.

[Phred42]

8. Point!

:toast:

[onenote]

12. with cost cutting, margins may not take as big a hit as you might expect

Moreover, for many retail outlets, its may be more important to move inventory, even if its just slightly above cost, than it is to get a big return on the items sold, but be stuck with a lot of inventory on hand. Cash flow and all that.

[Psephos]

13. In a highly-illiquid environment, they need cash flow a lot more than profits

This is good news.

[CTyankee]

2. Credit Barack Obama. He has soothed both the markets and the people.

When we have hope we will spend a little money. Certainly not what we used to, but some because we can now look forward to a better day.

I truly believe that Obama has helped us all understand that we are in the same boat and we have to row together. It's a little bit of security in a world of doubt...

[glowing]

3. I'm wondering if people cut back over the last couple of months to save up

and spend for Christmas.. October sales were super low..

AND how much merchandise was increased in price? Was year to year inflation factored in on the increase in sales from this year to last year?

[xchrom]

4. fingers crossed -- peoples jobs are on the line here. nt

[Nia Zuri]

5. People with jobs are thinking of this as their last good Christmas

Maybe lots folks are not sure if they will have jobs next year.

[TomInTib]

6. We had our best day of the year, yesterday.

But our Galleries are pretty high-end, and it only takes a few of the right buyers to knock it out of the park.

[Dawgs]

7. WHAT??? Yesterday they were reporting that sales were down.

Of course, they didn't have any numbers to back it up; just quotes from a few chosen shoppers.

[Phred42]

9. 2 major Malls in N.IL reported 95% capacity Friday

Gurnee Mills (theoretically an outlet mall but don't kid yourself)
and
Hawthorn Mall


I didn't go anywhere near either so I can't verify.

[MercutioATC]

10. I went to a mall on Saturday. Only the discount stores had traffic.

I was at a middle-end jewelry store in the mall to buy a diamond bracelet for my girlfriend. In the 30 minutes I was there, the only other customers were a couple shopping for an engagement ring.

[rcsl1998]

11. "Early Indications" - Let's Wait And See...

...what the actual sales truly say after the dust has settled.