11/30/2009

Black Friday

Even in a depressed economy black Friday improves sales for retailers across the board. The concept of discounts as a motivation for improving sales proves to be worthwhile. Year after year retailers send out the discount ads and ramp up inventory levels while at the same time limiting the level of other inventories. This method proved to be more difficult and less profitable due to the economy. From the article “Online retailers rev up deals to keep momentum” Mae Anderson says, “The bright spot offers hope after traditional retail sales came in just above flat for Black Friday, with shoppers packing stores but sticking to their lists, going for deep discounts and practical items. The ShopperTrak results contrast with a report Sunday from the National Retail Federation on its poll indicating that more shoppers flocked to stores but each spent less than last year.” This would be concerning that even though there are still many shoppers out in the stores they are sticking to their lists and spending less than last year.

The internet retail market has grown and continues to do so each year. Many retailers now have black Friday deals on days other than Friday. Many shoppers look for deals throughout the week of thanksgiving and especially on the day after. I think that even with the struggles of the economy and the decrease in sales for retailers the discount method of selling products does get many consumers thinking about their products. This helps promote more sales even on product that are not marked down for the black Friday event.

http://finance.yahoo.com/news/Online-retailers-rev-up-deals-apf-166935795.html?x=0

6 comments:

Leah said...

It is interesting to see that consumers are acting more responsible. Recent years have shown that the American consumer is generally a very impulsive buyer. Consumers have been forced to tighten their belts and buy only those things that they had previously planned on. These things are not necessarily only needs but they are items that have been budgeted for. This shows that buyers are becoming more responsible.

Robert said...

Considering the current condition of the economy, I think that Black Friday went rather well. It could have been a complete failure if retail stores had not slashed their margins in the expectation of enormous volume. I don't know if it will have been enough to bring retailers into the black, but it was successful considering our circumstances right now.

chase said...

This is the first year that I have ever had a taste of black Friday. I have always criticized my sister-in-law for how involved she gets with the discounted sales on black Friday. Being in Wal-Mart from 11 p.m. to 5 a.m. and seeing customers go hog wild, opened my eyes to what black Friday is truly about! I personally spent money that I didn't have on things I didn't need just because the deals were so great. I would have to disagree with Leah when she said, "Consumers have been forced to tighten their belts and buy only those things that they had previously planned on." Consumers run around the store buying items that everyone wants just to say they got the item before anyone else. It almost seems like bragging rights if you have that certain hot item. Although, I save 500 bucks on a TV I'm in the hole 800, but I got a great deal, and that seems to be everyone's mindset.

Dr. Tufte said...

-1 on Blake and Leah for a spelling error.

Overall, I'm not sure what coherent point Blake is trying to make. It's an interesting and timely post, but what are we supposed to make of it?

Was Black Friday better or worse? Compared to what?

Did discounts work or not? Compared to what?

Is the really important factor the novelty of Black Friday shopping?

Leah said...

Not that it's a huge deal, but there are no spelling errors at all in my post. Not that I couldn't be wrong but I really don't think there is any error.

Dr. Tufte said...

Leah:

"It is interesting to see that consumers are acting more responsible." should read "It is interesting to see that consumers are acting more responsibly."

I'll admit that this is a fairly common mistake in local usage, but a mistake it is.