Black Friday: Enough to Go Around?
by Robin Fiedler
The official Wal*Mart Black Friday Ads for local markets have been released at Wal*Mart. Also entering the battle, Apple Store has announced it will offer online Back Friday sales promotions. The sales are loaded with deals on electronics and technology. So will everyone buy a laptop, a TV, a digital camera, and a GPS this year?
With Black Friday discounts, each family could feasibly buy one of each and spend about $1000. But will we? The retailers are bombarding us with promises of great deals, deep discounts, hot toy sales, gift cards with purchases, free promotional gifts with certain purchases, and so on. TV’s and laptops are going for $300-$500. Digital cameras are under $100, a Blu-ray DVD player lists for under $100, and a GPS can be had for $70. We may just break our intended budget limit to snatch up such cheap deals. 
However, a pay with cash, not credit, trend may put a stop to big purchases this holiday season. The National Retail Federation survey indicates “one-fourth (24.9%) of holiday shoppers will pay for gifts this year with cash, a 9.1 percent increase from last year’s 22.8 percent. . . .The number of shoppers who will rely on credit cards is expected to fall 10.1 percent, with 28.3 percent of people using credit this year compared to 31.5 percent a year ago.” Retailers who offer layaway and interest free financing may have an edge even if they don’t offer the lowest prices.
Fortunately for shoppers the retailers are dropping and matching prices almost daily as they battle each other for sales to attract budget strapped shoppers. Arun Jain, Samuel P. Capen Professor of Marketing Research in the University at Buffalo School of Management “predicts that competition among stores will be fierce as they battle to grab whatever market share they can get in this depressed market. “As early as Halloween, we’ve seen ‘value-priced’ merchandise on display, and consumers have been bombarded with promotions, coupons, lay away and interest-free credits to nab sales.”
On the other side, unfortunately for shoppers, inventories are low. Retailers are advertising super cheap prices, but may barely have an item in stock. According to CNNMoney, many ads have fine print that says, “While supplies last,” “Minimum 2 per store,” “No rainchecks” or “All items are available in limited quantities.” What does the “minimum 2 per store” mean? It means each store will have at least 2 in stock. Just 2! The odds of scoring 1 of the 2 in stock will be like winning the lottery.
As all the forces of the retail universe stretch and pull at each other, the Black Friday excitement builds for the unknown finish. Will there be any winners? Will we end up with a house full of new electronics? Will the ‘doorbusters’ be in such limited supply that only old Black Friday circulars will adorn our desks? Will consumer budget constraints leave enough inventory to go around? Will retailers lose profits if consumers buy only the ‘doorbusters’ and ‘loss leaders’?
Well, there’s always Cyber Monday.
Sources
Grannis, Kathy. “More Holiday Shoppers Plan to Pay with Cash, Debit Cards this Year; Fewer Rely on Credit.” National Retail Federation. 17 Nov. 2009.
Kavilanz, Parija. “Dirty Secrets of Black Friday ‘Doorbusters.’” CNNMoney 20 Nov. 2009.
“Retailers Expect a Grinch-like Christmas, Says UB Retail Expert.” University at Buffalo School of Management.
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November 25th, 2009 at 1:15 pm
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