Chicago-based research firm ShopperTrak RCT said Saturday that U.S. retail sales on Black Friday increased 3.0% over the prior year. The research firm noted that preliminary sales estimated at a daily rate for Black Friday totaled $10.6 billion and said that retailers should be cautiously optimistic as deep discounts drove customers to retail locations.
Bill Martin, co-founder of ShopperTrak said, "Retailers truly experienced what we've dubbed the 'perfect storm' over the last few weeks, with the financial markets melting down, the presidential election which typically slows retail traffic and relatively high gasoline prices - all of which slowed both retail traffic and spending."
Martin added, "Under these circumstances, to start off the season in this fashion is truly amazing and is a testament to the resiliency of the American consumer, and undeniably proves a willingness to spend."
On a regional basis, the South reported a 3.4% increase in retail sales over the prior year, while sales in the Midwest increased 3.0% and sales in the West increased 2.7%. The Northeast recorded a 2.6% increase in retail sales.
However, ShopperTrak warned that there was no guarantee that deep discounts would continue after Black Friday weekend, which could slow spending. The firm noted that consumers would have just 27 days to shop in the current year as compared to 32 in 2007, which could lead to lower sales levels.
Historically, Black Friday has been one of the busiest retail shopping days of a year in terms of customer traffic. Usually, sales during the four weeks after Black Friday account for about 50% of stores' profits and sales. On Black Friday, many retailers open very early, typically at 5 a.m. or even earlier, and offer doorbuster deals to attract the early birds among shoppers.
However, unlike prior years' seasons, an unprecedented numbness is now prevailing across each and every sector of the U.S. economy. While panicky investors continue to make stock markets choppy, crisis in the sub-prime mortgage sector and the credit market has led to an increase in the number of credit defaulters in the country. Consumer confidence, which was already shaky on soaring living costs, has been hit hard by growing unemployment.
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