Shoppers Expect ‘Black Friday’ Discounts

When holiday shopping officially starts Friday merchants will see more people coming into their stores but the consumers are expected to have discounts on their minds.

Industry observers forecast Black Friday to bring out the shoppers after they spent the past year barely opening their wallets. While discounts will be a draw, those same experts still feel the consumers will cautiously shop.

Retailers and Web sites that broadcast Black Friday deals have shared sales plans earlier this year. The hope is leaking the news will trigger higher demand for flat-panel televisions, toys and other goods.

Bargains are what the shoppers will want as they still recall last year’s deep discounting during the holidays. Nearly 70 percent of respondents in one survey said they will hold out for discounts of at least 50 percent before they make their holiday purchases. Another poll determined 96 percent of retailers expect to increase this season’s promotions and discounts.

While the economy is slow to recover as unemployment rises, the expectation is shoppers have learned to live with the scary economic news and will begin spending again. Last year the shopping season began shortly after the world spiraled into a recession. Although more shoppers last year hit the malls and Web sites than 2007, holiday sales in 2008 were down 3.4 percent.

The National Retail Federation has forecast this year’s holiday season to generate 1 percent less sales than last year. The International Council of Shopping Centers is more optimistic with the expectation there will be a 1 percent to 2 percent increase.

“Black Friday” traditionally has referred to the start of the season when retailers get the chance to end the year with a profit, or “in the black.” However, 61 percent of U.S. retailers’ chief marketing officers are bracing for Black Friday sales to be flat. Another 33 percent of the marketing chiefs say there will be an increase.

ShopperTrak predicts Black Friday to once more be the busiest day for retail after claiming 6 percent of all sales during last year’s holiday season. The day could get some help from the weather as most of the nation expects to enjoy mild temperatures with a slight chance of precipitation.

If it does rain or snow, shoppers will have fewer places to escape the elements. There were 27 retailers filing for bankruptcy in 2008 with 18 more so far this year. Those retailers were responsible for up to $30 billion in sales.

Some of the retailers who are left are adding more minutes to their Black Friday to get their share of shoppers. Those Walmart stores not already open around-the-clock will open at midnight for the first time. Disney Stores and Toys “R” Us also have pushed back their openings to midnight.