Black Friday: What It Really Tells Us About Consumer - Holiday Central

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It's a make-it or break it time for retailers. The holiday selling season is always a critical time for retailers, but this year this may be even more true. With several retailers already falling victim to a drop in consumer spending, and filing for bankruptcy, retailers will be navigating through some tricky waters. Consumers are strapped for cash due to high energy and food prices, and unemployment is rising. The recent credit crunch has made it more challenging for retailers and consumers to borrow.

This blog will look at the winners and losers in the retail space. Who has the right strategy to capture consumer dollars? It also will look for trends in consumer spending and how that will impact the economy.

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Nov.21

3:53 PM ET

Wednesday, 21 Nov 2007

Black Friday: What It Really Tells Us About Consumer

Posted By:Margaret Brennan

Topics:Consumers | Retail Sales

Sectors:Retail

Black Friday
CNBC.com
Will this week tell us anything about the state of the consumer or retail? After all, there is some controversy about just how big Black Friday is in terms of actual dollars spent and in-store traffic levels.

Each year, just how much Black Friday rings up seems to fluctuate but I would place my bets alongside analyst Dana Telsey in saying that the last ten days before Christmas make more of a difference in sales. Black Friday transactions account for 9-10 percent of holiday sales.

That said, what we will see this week is just whether the consumer shows up to spend in a slowing consumer environment. Store traffic could be considered a recession indicator.

If shoppers turn out in healthy numbers to shop around this event AND actually buy these promoted/marked down items, that is a sign that the consumer isn't panicked just yet.

We need Black Friday to be heavily trafficked and the malls to be full. That way we can all breathe a sigh of relief until the real buying bonanza begins right before Christmas.

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