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Shoppers Turn Out for Black Friday

November 25, 2005

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As predicted, U.S. retailers slashed prices at the official start of the 2005 holiday shopping season, hoping to lure consumers who are considering a frugal approach to Christmas to offset rising gasoline and home heating costs.

Many retailers didn’t rely solely on prices, but competed to outdo one another in over-the-top promotions to kick off the year’s busiest shopping day.

Sears stores opened their doors at 6 a.m., but Wal-Mart outdid that by opening at 5:00 a.m. Target outdid them all by offering pre-registered shoppers wake-up calls from Kermit the Frog. Sam’s Club offered free breakfast to early shoppers.

What kind of bargains greeted shoppers on Black Friday? Early shoppers at Sears received $10 gift cards. Wal-Mart slashed prices on DVD’s to below $4. J.C. Penney sold overcoats as much as 50 percent below list price.

Did the gimmicks and promotions work? It will be a day or two before the cash register receipts are tallied up, but from all appearances, the shopping season is off to a busy – if not profitable start – for retailers. The National Retailers Association predicts holiday sales growth of up to six percent, though most economists expect it to be closer to three percent.

It may also help retailers that gasoline prices seem to be falling nationwide, just as the shopping season gets underway. With fuel prices retreating from highs of over $3 a gallon in the wake of Hurricanes Katrina and Rita, retailers hope consumers will be encouraged to open their wallets wide throughout the holiday season.

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