New York – Retailers got what they wanted over the Thanksgiving weekend – a strong start to the 2006 holiday shopping season – as consumers crowded stores in search of huge discounts on flat-screen TVs and other hot merchandise.
Stores and malls that opened as early as midnight Thursday drew a bigger-than-expected turnout, and robust sales for the first day of the season offset slower business as the weekend wore on, according to early reports.
The biggest winners appeared to be electronics chains such as Best Buy and popular-priced department stores including JC Penney, which pulled in shoppers with good deals. Yet Wal-Mart, which promised the most aggressive discounting ever, was an exception, announcing Saturday that same-store sales for November will be slightly below its already lackluster forecast. Wal- Mart has struggled for months to appeal to both higher-income shoppers and low-price fans.
The question for the retail industry overall is whether the bargain hunters who raided stores for early-bird specials over the weekend will have the same zeal as they shop between now and the end of the season, when the discounts may not be as steep.
“The hysteria has come down a bit, but it was a great start,” said Bill Martin, co-founder of ShopperTrak RCT, which tracks total sales at more than 45,000 mall-based retail outlets. But he said the true measure of the season is whether “retailers can sustain the loyalty and excitement” until the end.
Martin expects that total retail sales for the first weekend of the season will be higher than last year, boosted by Friday’s better- than-expected business. Total sales rose 6 percent to $8.96 billion that day, compared with a year earlier, according to ShopperTrak.
Retailers were optimistic but also a little uneasy going into the season, concerned that economic factors like the slowing housing market might make shoppers more conservative. And many shoppers interviewed during the weekend said they were trying to be budget-conscious.
