Market Developments

Early openings, deals drove strong Black Friday

Nov 29, 2011

New York--Record weekend spending was fueled by earlier-than-usual Black Friday openings at a number of major retailers, two post-weekend surveys show.

According to a survey conducted by BIGresearch for the National Retail Federation (NRF), 24 percent of Black Friday shoppers were at the stores by midnight that day, either waiting for them to open or already inside, thanks to the number of retailers that opened on Thanksgiving evening.

That number is up from 10 percent in 2010 and 3 percent in 2009.

“Early-morning openings appear to have been well worth it for both retailers and holiday shoppers, with many Americans believing that deals were too good to pass up regardless of who they were shopping for -- themselves or others,” NRF President and CEO Matthew Shay said.

In its second annual “Anatomy of Black Friday and Cyber Monday” study, The NPD Group Inc. found that stores that moved their Black Friday opening hours to midnight or earlier saw a 24 percent increase on average in their conversion rate.

The highest-percentage of consumers, 43 percent, said seeing an item they wanted on sale is what spurred them to shop on Black Friday, followed by a particular retailers having a big sale at 22 percent, door-buster specials that were “too good to pass up” at 22 percent and having Black Friday shopping as a group outing with family or friends at 21 percent.

The family-friends angle of Black Friday was the biggest gainer year-over-year, climbing from 14 percent to 21 percent.

“When compared to some stores that kept their traditional early Black Friday morning openings, it appears that some may have lost as much as 8 percent in their conversion rates. I would say that means we will have to be on the lookout for a new tradition ... and that is more and more stores will be opening on Thanksgiving night next year,” said Marshal Cohen, chief industry analyst for the NPD Group.

While the NRF heralded the holiday weekend as a sign of a strong season ahead, the NPD Group study showed that 56 percent of consumers who shopped on Black Friday were not likely to shop again on Saturday and/or Sunday.

Cohen said this is a sign of a consumer who is “tapped out.”

“This year credit is tight, cash is limited and the promise of better times ahead is being held at bay and that all adds up to a less enthusiastic consumer,” he said.

However, the NPD Group did note in its study that 46 percent of consumers purchased something for themselves on Black Friday, up from 35 percent last year, a positive statistic for retailers as it means there’s still many holiday gifts yet to be purchased.

Overall, the NRF survey pegs total Black Friday weekend (defined as Thursday, Friday, Saturday and projected spending for Sunday) sales at $52.4 billion, with a record 226 million shoppers visiting stores and websites. That is up from 212 million in 2010. 

The average spend per shopper was up from $365.34 last year to $398.62 this year.

Other results from the NRF survey include:
- The most popular purchase among shoppers was clothing and clothing accessories, with 51 percent of shoppers stocking up on items in this category. Also popular were electronic items, purchased by 39 percent of shoppers, and toys, purchased by 33 percent. 

- A total of 14 percent of shoppers bought jewelry. 

- The most popular shopping destinations remained department stores, visited by 49 percent of shoppers, followed by discounters at 38 percent and electronics stores at 31 percent.

- Compared to last year, slightly more consumers logged onto retailers’ websites over the weekend (35 percent this year vs. 34 percent last year).

- A total of 26 percent of Americans with tablet computers said they did or will purchase items with their tablets and 37 percent said they have or will use the devices to research products or comparison shop.

 

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