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Black Friday may be less profitable due to slumping economy |
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Written by Brian McCormack
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Saturday, 22 November 2008 |
Each year, the day after Thanksgiving marks the start of the holiday shopping season. Dubbed "Black" Friday, many retailers are open extended hours and offer sale prices on many consumer products. The origin of the name is believed to harken back to the days before computers. Accountants would mark losses in red ink, and profits in black.
Usually, it is one of the most profitable days of the year for businesses, and the start of a hectic holiday season where Americans drop cash and plastic on goods and gifts to be exchanged at Christmas.
This year however, some analysts are predicting at least a slight drop in sales from last year. Burt Flickinger III, managing director for Strategic Resource Group, is projecting a three percent drop in revenue from last year.
Economic woes is the reason for the possible decline. People are worried about job loss, energy prices and mortgage payments. When the economy is in a downturn, naturally consumers are willing to spend less on material goods.
That won't stop the stores from trying to court shoppers, however. Retail giants such as Wal-Mart, K-Mart, Target and Sears, along with smaller businesses, are gearing up for the shopping season. With the decision to stop broadcasting television in analogue, high definition televisions are expected to be flying off the shelves. Many corporations who deal in electronics are already offering what they call "black Friday prices" on TVs, and the sets are said to be offered at record-low prices.
What lengths the stores are willing to go when slashing prices to offset the economic situation remains to be seen.
Sales blitzes are inevitable however, and those brave enough to mix with the masses of holiday shoppers and determined enough to fight for a parking space, like any other year, good deals on many items awaits. |
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Last Updated ( Monday, 24 November 2008 )
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