Retail sales break records, Cyber Monday up next
— -- Retail sales broke records during Thanksgiving weekend, hitting an estimated $52 billion in stores and online, the National Retail Federation said Sunday.
This year's sales are up from $45 billion last year. A record 226 million shoppers visited stores and websites over Black Friday weekend, up from 212 million last year. The average holiday shopper spent about $400 this weekend, up from $365 last year.
Big Black Friday weekends aren't always a sign of consumers' confidence in the economy: The previous top weekend was in the depths of the recession in 2008. But this year's holiday shopping was more of a splurge than a scrounge for cheap necessities.
"Many of the purchases this weekend were for 'self-gifting' and many more discretionary categories than we saw in 2008, when people were lining up for the basics like clothes and small appliances," says NRF spokeswoman Ellen Davis. "We aren't seeing that level of desperation this year."
Miami's Dolphin Mall estimated only 40% of its sales were holiday gifts, based on requests for gift receipts and the number of people trying on clothes, says Karen MacDonald, a spokeswoman for mall owner Taubman. Other Taubman malls, including Novi, Mich.-based Twelve Oaks, reported about half of what shoppers bought were self purchases.
That's about how much of Amy Stonesifer's purchases were for herself and her husband to use now. She and her mother-in-law avoided crowded big-box stores in favor of local malls and outlet stores, including Saks Fifth Avenue's Off Fifth and Nordstrom Rack.
"We made a big dent in holiday shopping and got some great items for ourselves," says Stonesifer, of Sugarland, Texas. "We got some great bargains on great brands for shoes and clothing."
Online shopping is increasing in popularity as the in-store frenzy reaches almost unimaginable levels, including gunfire and the death of a man that shoppers in West Virginia reportedly stepped over to get to the bargains.
More than half of the U.S. population — or 123 million people — plans to shop from the safety of their office or home computer chair on Monday, which is known for its online promotions.
Cyber Monday was the biggest shopping day last year and reached $1 billion, according to Web-tracking company ComScore.
The Monday after Thanksgiving used to be the first day many people had broadband access when they returned to their offices. Most people who have computers at their offices now have high-speed internet at home and likely their mobile devices, but retailers have stepped up the free shipping and other deals so much that consumers are now conditioned to keep shopping.
The retail federation says 87% of shoppers say they'll shop Monday from their home computers, but the percentage who plan to shop online from work is expected to be up from 12% last year to 16% this year.
Many retailers are planning to offer special deals during lunchtime to cater to office-based shoppers, Davis says. Some are expected to offer 30% off everything, something seldom seen in stores.
Some of the Monday traffic will come from shoppers who stayed home in protest of the increasingly early openings on Thanksgiving and Friday morning.
"I resented the Thanksgiving creep into Black Thursday Night, and decided not to shop. I understand retailers needing to capture the early dollars, but felt empathy for the employees having to go to work," says Kathy Bergholz of Burr Ridge, Ill. "Working in essential services is one thing, but retail?"
The trend towards earlier openings, however, is sure to accelerate due to the response from shoppers, says Davis. The percentage of people who were shopping before midnight was up from 3% in 2009 to more than 24% this year.
"Consumers vote with their feet and vote with their wallets," she says. "Midnight is the magic hour for Black Friday shopping."
