After Black Friday, Doubts Grow About a Shopping Uptick

[steven johnson]

Consumer sentiment may have improved in the past month but merchants are seeing bargain obsessed shoppers. This Christmas is not looking like reignited consumer spending. There is still an economic gloom in the air.

Consumer confidence improves slightly in November

Bargain-hunting shoppers turned out in droves for Black Friday markdowns, but they didn't open their pocketbooks as widely as last year, according to several retail firms tracking the data. As a result, retailers are only cautiously optimistic heading into the mainstream holiday season, including today's Cyber Monday, and experts believe that many stores will likely have to revamp promotions and discounting plans to ensure that inventories will be cleared by Christmas.

The National Retail Federation (NRF) estimates that 195 million people visited stores and websites over the Black Friday holiday weekend, up from 172 million last year. However, shoppers spent less, with average spending dipping 8%, to $343.31 a person from $372.57 a year earlier. Total spending over the holiday kickoff weekend reached $41.2 billion, up only slightly from $41 billion a year ago.

"Shopper traffic well surpassed our expectations," says Krugman. However, the dip in spending left him cautious, and he continues to project a 1% sales decline for the total holiday season.

Online sales clearly did better, but that's only 4% of total retail sales," says Davidowitz.

After Black Friday, Doubts Grow About a Shopping Uptick

[Teaser]

1. YAY FOR GLOOM!

.

[DJ13]

2. Credit contraction, double digit unemployement, foreclosures, 30% CC interest rates

....and there are people STUPID ENOUGH to expect a good holiday shopping season?!

[roody]

3. I enjoyed Buy-nothing day visiting a friend in the country.

[Teaser]

4. and I bought tons of stuff.

.

[NickB79]

6. Did it make you any happier, or your life any better? nt

[tom_paine]

9. Of course it made their life better? Isn't that what The TV says?

As we all know, the TV is God, Parent, Wife, Mother, Secret Lover to all the Americccan Subject Populace.

TV says shopping = happines.

So shopping equals happiness. It really is that simple.

:sarcasm:

[Manifestor_of_Light]

5. People should learn manual skills if they are unemployed.

and have time.
Welding, fabricating, auto mechanics, cooking, sewing, knitting....lots of things.

[blue97keet]

7. Ya, especially if the stores have nothing but "made in China"

[ixion]

8. RE: "reignited consumer spending"

consumer spending is dead -- at least in the context of driving the economy. Those waiting for it to "reignite" are going to be sorely disappointed.

Consumers have had their credit lines slashed/closed/ or had the rates increased such that they will be less likely to use the credit line.

No credit + No Jobs + Stagnant salaries = no consumer driven economy.