Catching the Early Bird on "Black Friday" 2006

“Black Friday,” as the day following Thanksgiving is now known, has been a holiday bellwether for the retail industry for many years – and 2006 was no exception. According to consumer surveys conducted by The NPD Group before and after this crucial shopping day, retailers in many categories reaped great rewards from the earliest holiday shoppers, while other channels experienced softer holiday sales than they’d hoped.

“As always, retailers are looking to raise the bar when it comes to ‘Black Friday’ deals and other promotions designed to get customers shopping early,” said Marshal Cohen, NPD chief industry analyst. “Consumers now expect to find some of the best discounts and other promotions right after the Thanksgiving holiday, which can mean big dividends for smart retailers.”

According to NPD’s “Black Friday” consumer survey, which was conducted just after the Thanksgiving holiday, 35 percent of consumers planned holiday shopping trips for the weekend after Thanksgiving – that’s 8 percent more holiday shoppers than NPD reported last year. Just over 30 percent of men in the survey shopped over the weekend, compared to 40 percent for women.

What they bought (and where)

For those consumers who braved the “Black Friday” crowds and took advantage of early holiday sales, 32 percent purchased apparel, 28 percent purchased DVDs, 20 percent purchased toys, 18 percent purchased home products (e.g., home appliances and décor), and 17 percent purchased holiday decorations. Consumer electronics purchases showed a slight increase to 12 percent from last year’s 10 percent.

Recent media reports have highlighted softer sales for Wal-Mart and other mass merchants; however, NPD found that more than half of consumers (53 percent) still shopped the mass channel after Thanksgiving. Chain stores were the next most popular “Black Friday” shopping destination (30 percent), followed by department stores (18 percent), and the Web (10 percent).

“Registers were definitely ringing over Thanksgiving weekend, and as usual, not all of the merchandise sold was actually destined for a spot under the Christmas tree,” Cohen said. Twenty-seven percent of consumers purchased items only for themselves and more than half (54 percent) purchased items for themselves in addition to purchasing gifts for others. Just two out of every 10 consumers reported only buying gifts for others over the weekend, which is good news for retailers.

Savvy consumers plan ahead – and so do smart retailers

Among consumers surveyed after the Thanksgiving holiday, 16 percent expected to spend more than they did last year on holiday gifts, and 67 percent reported that they had planned ahead to shop during the holiday weekend; however, there were differences in the way many went about doing so. Nearly a third researched prices online, while half scoped out prices and gifts before the holiday, but planned to go back to purchase certain items after Thanksgiving.

“Most successful companies plan for the holiday season long before Thanksgiving,” Cohen said, “and with savvy, price-conscious consumers eyeing potential deals prior to the holidays, smart retailers need to ensure their loyal early shoppers are kept apprised about upcoming holiday promotions. A free flow of information and continued price and product offerings can go a long way toward bringing customers into the store on ‘Black Friday’ and beyond.”