Black Friday sales stronger than expected

Black Friday sales stronger than expected

abclocal.go.com
(visit the link for the full news article)

I was at Walmart early Friday

Really early and I was amazed at what I witnessed

I was thinking to myself hey people you are broke put away your credit cards!

I paid cash and picked up a 46" Samsung and a Blueray player

I'm luckier than most I guess I could pay cash.

Was this just a fluke or is all the gloom and doom predictions just mass hysteria?


abclocal.go.com
(visit the link for the full news article)

[edit on 1-12-2008 by SLAYER69]

Just about everyone i talk to says they have no idea where all this economic doom and gloom is coming from because it hasnt affected them. I must say it hasnt affected me either!! Things are doing great where i live, in fact we just posted record shopping here as well in comparison to the last 10 years.

reply to post by princeofpeace

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Gloom and doom
Now there are all kinds of threads spouting gloom and doom now there is a new one about the recession started in 2007?

I still haven’t felt that one either

that's kind of like a retroactive abortion!

I agree a lot of it is played up by the media.

I think some of the big businesses and corporations are hurting, but for the most part is hasn't affected the average person. Granted there are those who have been affected, and may be struggling mightily right now.

Overall I think the majority of America is doing just fine though. The usual holiday shopping scene is evidence of that.

Let me give you people a littler lesson on economics.

Yes the profits were up, but is many factors that come into consideration and is all about the way the profits are made.

You have to take into consideration the amount of profits that were made in cash vs credit.

Cash is money at hand liquidity for the retailers vs credit that is money promised but no really pay for.

Wait about one month to see how really the profits were made, in nation in recession with so many defaults on credit how much of that purchases will be actually profits but loses.

Second thing to take into consideration

1- Profits were hurt by bargain basement prices, what this means is that while the store sold much of their merchandise how much the store lowered the prices to make the sale and how much of that can be considered profits.

2- holiday sales account for 25 to 40 percent of annual sales for retailers but this was during the holiday sales, now been the economy in recession how much of sales will be done during the rest of the year, the holiday sale can be out weight when shoppers stop purchasing after the holidays.

3- Black Friday sales increased by 3 percent over the year before. But, with prices slashed to such great extents, retailers’ profits are still behind. this means that in order to make sales stores had to lower prices more than in pass holidays that will be deducted from the profits.

4- “You’re looking at discounts of 50 to 70 percent off,” so “You have to sell two to three times as much to break even.” that is self explanatory.

5- After black Friday shopped dropped dramatically, so the weekend was not as profitable as Friday.

So at the end and with the trend due to recession is expected that shopping overall during the season will be down by 10 percent from last year.

One day of shopping doesn't account for the entire year of loses.




[edit on 1-12-2008 by marg6043]

Thanks for the "littler" lesson some of us know how it works

what I was referring to was the consumer confidence.

Consumer confidence is at all time low, and so is reflected on the markets.

Look at the markets today reaction to black Friday shopping, even with the so call good day on Friday the fact that shoppers didn't stay shopping for the entire weekend is reflected on the consumer confidence and the numbers in the markets today.

428 down the last time I looked at.

So the markets knows that things are not so good.

reply to post by marg6043

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I am old enough to know what a real recession is I have lived through 3 of them, I'm just not seeing the same thing I'm old enough to remember stagflation under Carter and watched Bush senior loose his reelection because he just did not get it when people were hurting and later at the beginning of 2000

oil prices dropping, the over all of the mood where I live is optimistic

I'm saying I have not seen all the gloom and doom

[edit on 1-12-2008 by SLAYER69]

Good article here about Black Friday

Deep Discounts Draw Shoppers, but Not Profits



www.nytimes.com...

People flooded the retail stores because they knew that we are facing a deflation, meaning that prices are down, including gas prices.

Many shoppers waited for Black Friday to do their purchases perhaps the only purchases that they will do for the rest of the holiday season.

Now we have another big sale going on the one after Christmas sale and I can only imagine bargain hunters going after that day also.

reply to post by SLAYER69

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That is because we are having a deflection right now making possible for people to be able to purchase more with their money, but at the expenses of retail profits.

I also been around for a while.

reply to post by marg6043

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True that but when the shelves go bare retailers will have to replenish their stock and make purchases and that keeps the ball rolling food prices should also drop now that oil prices have fallen.

Yes that is true, but remember that retailers can only take so much loses before they either cut their work force or either go bankrupt.

Since last year the amount of small retail stores going out of business is staggering, this only inflates the unemployment rates.

reply to post by marg6043

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We both know there is more to this than just deflation!

Come on with the dollar falling that means American made products will be cheaper abroad and will help the manufacturing sectors but with anything on the scale of the US economy time will tell.

Yes but while we are crazy for foreign goods Americas products seat on Chinese stores gathering dust.

Right now China has been hit on the retail industry as the global recession spread, they are becoming losers while American consumers hold to their pockets.

Japan is now officially on a recession also.

BTW gas prices are down but the OPEC already reduced production in October and while their "emergency" meeting this weekend they didn't came to an agreement to lower more production they are waiting for next week to do that.

This only means that gas prices will raise again as production is cut further.

true

But what is not mentioned in the press or has not gotten too much air time is the fact why prices climbed so high in the first place was a direct response to China purchasing huge amounts of oil almost in the amount that the US regularly purchases global production was not up to speed.


Cut production now and then raise it again next summer when the Chinese make another large purchase.

The explanation behind this is likely "regional differences". Certain regions are more effected than others.

I can tell you that here where I live, there is DEFINITELY a hardship taking place in several towns of my valley. There are certain sections of industrial and small business shops that look almost like ghost towns, with every other shop / building either empty, or with "closing for good" signs on them.

There will be areas that are the opposite, and alot of the folks here appear to be fortunate enough to live in such areas.

But it is certainly not that way everywhere, because I have seen it first hand.

I work at your average run of the mill corporately owned auto shop located near a pretty big shopping mall.

All the salesmen I work with along with my boss and all the idiots at the top of the ladder were amazed Friday by the huge increase we had over last years numbers. A nearly 50% increase over last black Friday. We didn't even have any great deals or anything as we're an auto/tire shop , not a retail store. EVERYONE was buying the top of the line products and nobody was even interested in the low budget garbage like they always are every other day of the year. It was nuts and I made A LOT of money, I didn't even have to try. I've been there for four years and never seen a B.F. like this one.

BUT Its been dead dead dead since yesterday and we think that's how it's going to stay. Our theory is that a lot of people HAD to take advantage of black Friday this year just so they could afford to get gifts for everyone they wanted to. We're keeping our fingers crossed but it looks like Christmas shopping is slumping already.

My wife drug me out at 4AM to go Black Friday shopping and between trying to find parking and waiting in mega checkout lines I didn't notice a difference from any other Black Friday. I just wish the new giant Menard's complex they are building would have opened in time.

Now we are in a recesion read some of the newer posts as if we didnt know that!

Just wait a few minutes we will go to a depression and if you wait a bit longer we will be in total anarchy!