27.11.09
Nov. 27 (Bloomberg) -- Shoppers took advantage of Black
Friday discounts to snap up televisions, laptop computers and
robot hamsters at Best Buy Co. , Target Corp. and Toys “R” Us
Inc. stores from New Jersey to Texas.
Wal-Mart Stores Inc., the world’s largest retailer, drew
crowds with $298 Hewlett-Packard laptop computers and other
specials that went on sale at 5 a.m. Best Buy Inc., the biggest
electronics chain, had bigger early-morning crowds than last
year, Chief Executive Officer Brian Dunn said. The lines in
front of the stores were longer, and the company’s Web site
attracted more visitors, Dunn said.
“Those are both directionally important indicators for
us,” Dunn said in a Bloomberg Television interview.
The day after U.S. Thanksgiving is known as Black Friday,
the traditional beginning of holiday buying. Explanations of the
phrase’s origins differ, one holding that it’s the weekend when
retailers go to being in the black, profitable for the year.
Stores open early on Black Friday and offer early-bird discounts
to attract business. This year, shoppers say they plan to spend
less on gifts than they did last year.
U.S. retailers reported strong shopper traffic as bargains
on electronics, toys and apparel drew budget-conscious
consumers, the National Retail Federation, a Washington-based
trade group, said in a statement.
$1,000 Savings
“I do this because of my family,” Eihab Elzubier, a truck
driver, said as he stood at the head of the line outside a Best
Buy in Greensboro, North Carolina, before the store opened this
morning. He arrived at 9 a.m. yesterday and kept his place in
line with help of his wife, mother and sister.
Elzubier, 41, figured the 20-hour wait would save him as
much as $1,000. He planned to buy a 42-inch Samsung flat-panel
TV for $547.99, a Sony laptop computer for $399.99, a Compaq
laptop for $179.99, software and accessories.
Walmart, based in Bentonville, Arkansas, kept stores open
all night so shoppers could grab $3 pajamas and $15 Miley Cyrus
jeans when they went on sale at 5 a.m. Employees handed out
vouchers for discounted consumer electronics to early arrivals
and distributed circulars and maps indicating promoted items.
The world’s largest retailer cut some toy prices to $5.
Walmart, Plano, Texas-based J.C. Penney Co., Target, Macy’s Inc. and Sears Holdings Corp.’s Kmart all advertised discounted slow
cookers for early shoppers in Thursday circulars. Prices ranged
from $3 to $20.
Picking Carefully
Shirley Johnson, 48, an accounting clerk from Rittman,
Ohio, was hunting for the best values on items like gloves by
keeping fliers in her car and going from store to store.
“Normally my cart would be full with gifts on Black
Friday,” she said at the Walmart in Medina, Ohio. “Now I have
maybe $10 worth of carefully picked items that were on special.
There are just more and more expenses and less and less money.”
Walmart fell 33 cents to $54.63 at 1:01 p.m. in New York
Stock Exchange composite trading. Target fell 13 cents to
$47.70. Richfield, Minnesota-based Best Buy lost 43 cents to
$42.83, and J.C. Penney declined $1.07 to $29.57.
Based on visit to stores and comments by store employees,
sales are probably meeting or exceeding projections, David
Schick , a Baltimore-based analyst with Stifel Nicolaus & Co.
wrote in a note to investors today.
Flat-Panel TVs
There seem to be more discounts on TVs this year, and
shoppers are snapping them up, said Charles O’Shea , a New York-
based retail analyst with Moody’s Investors Service. In the four
hours he spent checking retailers in northern New Jersey, he saw
several shoppers standing at bus stops holding flat-panel sets.
“It looks like everybody has caught the promotional bug
pretty heavily,” O’Shea said.
The 12,000-car parking lot at Taubman Centers Inc.’s
Woodfield Mall in Chicago was 35 percent full by 6 a.m.,
compared with 28 percent last year, Bill Taubman , chief
operating officer of Taubman Centers, a U.S. real estate
investment trust with 24 malls, said in a telephone interview.
“There’s a little more traffic than last year across the
board, maybe 10 percent,” he said.
Toys “R” Us, based in Wayne, New Jersey, had an average
of 1,000 people outside all its stores before they opened at
midnight, five hours earlier than last year, said Chairman and
CEO Jerry Storch . The chains sold a “significant number” of
Apple Inc. iPods and tens of thousands of Zhu Zhu Pets robot
hamsters, he said.
Zhu Zhu Ticket
Angela Akra, a 33-year-old office manager from Bristol,
Connecticut, got to the Toys “R’ Us store at the Corbin’s
Corner shopping center in West Hartford last night at 10:50 p.m.
and snared a coveted ticket for a $10 Zhu Zhu Pets toy.
“We’re optimistic,” Storch said in a telephone interview
today. “The last thing parents will cut back on is toys for
their kids.”
In New York’s Herald Square, shoppers streamed in and out
of the Victoria’s Secret and H&M stores with multiple shopping
bags at dawn.
Shopper traffic appeared greater than a year ago, and
continued to flow into the Herald Square store after the initial
rush, Macy’s Chairman and CEO Terry Lundgren said. Housewares
and jewelry were selling “briskly,” he said.
“Last year, we were in a much more defensive posture,”
Lundgren said in a telephone interview. “This year, we are in a
much more offensive posture.”
Coffee Maker
Martha Alfaro, 29, a retail production manager, bought a
coffee maker after arriving at the store at 5 a.m.
Members of more than a quarter of U.S. households planned
to shop today, according to the International Council of
Shopping Centers, a New York-based trade group.
Deann Smyers, 53, arrived at a Best Buy in Houston at 7:30
a.m. on Thanksgiving to wait for the chance to buy a Samsung
refrigerator offered at almost half of its original price. Her
son Dustin, 28, was looking for a GPS and laptop.
“We researched the ads, and this just had the things we
wanted,” she said.
Joe Dejean, a 24-year-old financial consultant, found 60
percent off on menswear at a Saks Inc. store in New York and
picked up some shirts and toiletries.
“I’m not really sure if prices are going to get any
lower,” he said. “I may come back to Saks later after checking
a few more places.”
With unemployment at 10.2 percent, price is more important
to consumers this year than selection, quality or convenience,
according to the National Retail Federation. Shoppers may spend
an average of $682.74 on Christmas gifts this year, compared
with $705.01 last year, according to the Washington-based NRF.
IMac computers
Apple reduced the price of 21.5-inch iMac computers by $101
to $1,098 today and discounted its 64-gigabyte iPod Touch
musical device by $41 to $358, according to the Cupertino,
California-based company’s Web site.
Lorna Artibani, 52, hosted a meal at home yesterday for a
dozen family members until 10:30 p.m. An hour later, she and her
30-year-old daughter headed to the Toys “R” Us in West
Hartford, Connecticut, to look for gifts for her 9-year-old
granddaughter.
“It’s kind of like the excitement of getting that elusive
game,” said Artibani.
To contact the reporters on this story: Cotten Timberlake in Washington at ctimberlake@bloomberg.net Chris Burritt in Greensboro, North Carolina, at
1348 or cburritt@bloomberg.net ;
Last Updated: November 27, 2009 15:29 EST
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