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Retailers slow discounts after "Black Friday"
(Reuters) - Retailers scaled back discounts and shoppers were less frenzied on Saturday, a day after the mad rush for "Black Friday" bargains kicked off the holiday shopping season.
Despite the annual chaos on Black Friday, sales volume the day after Thanksgiving proved tepid as many shoppers openedtheir wallets only for deep discounts, according to ShopperTrak, which monitors retail traffic.
U.S. retail sales on Friday rose a mere 0.3 percent from the same period last year, while traffic rose 2.2 percent, ShopperTrak said. Heavily discounted merchandise may increase volume, but negatively skews sales data while cutting into profit margins.
The focus on discounts this weekend, together with slow traffic trends Saturday, brings up a key question -- can retailers sustain sales for the season merely through deals?
"They're struggling to come up with new unique ways to catch the eyes of the customers," said Deanna Bowman, browsing at a Macy's in downtown San Francisco.
Despite signs that consumers, especially those at the upper end of the economic scale, are more confident, shoppers are still cautious, analysts said.
"Price is still a big determinant of the purchase," said Telsey Advisory Group analyst Joseph Feldman. "People obviously want items and when it hits the right price they will buy it. ... They will wait longer if it's not."
Still, Saturday's subsequent ease-up on discounts makes sense considering the strong traffic kick-off to the busiest selling season of the year. Retailers have almost a month to sell their goods before Christmas Day, analysts said.
"For the retailer, the holiday season is more of a marathon than a sprint," Moody's analyst Scott Tuhy told Reuters. "We still have 28 shopping days to Christmas."
"As retailers seek to keep momentum going, obviously you can't do yesterday (Black Friday) day after day for 28 days."
Shoppers also enjoyed retail bargains earlier in the season and headed online this weekend for deals, factors that may have cut into sales at brick-and-mortar stores.
U.S. online sales were up 33 percent on Thanksgiving this year, according to IBM Coremetrics, signaling irresistible promotions in advance of Cyber Monday, the kick-off to the online holiday selling season.
UPHILL BATTLE
Crowds were light at a Gap store on New York's Upper West Side as the retailer offered smaller discounts. Shoppers were also scarce at nearby Zales, Talbots and Chicos stores.
Shoppers appeared to recognize that advertised bargains weren't necessarily the best-ever and that retailers had an uphill battle keeping deals fresh.
Despite the annual chaos on Black Friday, sales volume the day after Thanksgiving proved tepid as many shoppers openedtheir wallets only for deep discounts, according to ShopperTrak, which monitors retail traffic.
U.S. retail sales on Friday rose a mere 0.3 percent from the same period last year, while traffic rose 2.2 percent, ShopperTrak said. Heavily discounted merchandise may increase volume, but negatively skews sales data while cutting into profit margins.
The focus on discounts this weekend, together with slow traffic trends Saturday, brings up a key question -- can retailers sustain sales for the season merely through deals?
"They're struggling to come up with new unique ways to catch the eyes of the customers," said Deanna Bowman, browsing at a Macy's in downtown San Francisco.
Despite signs that consumers, especially those at the upper end of the economic scale, are more confident, shoppers are still cautious, analysts said.
"Price is still a big determinant of the purchase," said Telsey Advisory Group analyst Joseph Feldman. "People obviously want items and when it hits the right price they will buy it. ... They will wait longer if it's not."
Still, Saturday's subsequent ease-up on discounts makes sense considering the strong traffic kick-off to the busiest selling season of the year. Retailers have almost a month to sell their goods before Christmas Day, analysts said.
"For the retailer, the holiday season is more of a marathon than a sprint," Moody's analyst Scott Tuhy told Reuters. "We still have 28 shopping days to Christmas."
"As retailers seek to keep momentum going, obviously you can't do yesterday (Black Friday) day after day for 28 days."
Shoppers also enjoyed retail bargains earlier in the season and headed online this weekend for deals, factors that may have cut into sales at brick-and-mortar stores.
U.S. online sales were up 33 percent on Thanksgiving this year, according to IBM Coremetrics, signaling irresistible promotions in advance of Cyber Monday, the kick-off to the online holiday selling season.
UPHILL BATTLE
Crowds were light at a Gap store on New York's Upper West Side as the retailer offered smaller discounts. Shoppers were also scarce at nearby Zales, Talbots and Chicos stores.
Shoppers appeared to recognize that advertised bargains weren't necessarily the best-ever and that retailers had an uphill battle keeping deals fresh.
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