U.S. retail sales during Thanksgiving weekend climbed 16 percent to a record as shoppers flocked to stores earlier and spent more, according to the National Retail Federation.
Sales totaled $52.4 billion, and the average shopper spent $398.62 during the holiday weekend, up from $365.34 a year earlier, the Washington-based trade group said in a statement Sunday, citing a survey conducted by BIGresearch. More than a third of that ― an average of $150.53 ― was spent online.
“Consumers are clearly demonstrating their desire to spend this holiday season, but are far from throwing caution to the wind when it comes to how much they will spend on gifts,” Phil Rist, executive vice president at BIGresearch, said in a statement. “Retailers will have to stick to an aggressive holiday promotion schedule to keep consumers interested.”
The brisk turnout came as retailers from Gap Inc. to Wal- Mart Stores Inc. to Toys “R” Us Inc. opened their doors earlier than ever. The expanded hours also spurred online sales, which gained 39 percent on Thanksgiving and 24 percent on Black Friday, according to International Business Machines Corp.’s Coremetrics. Black Friday is so named because many retailers are said to become profitable then.
The annual shopathon arrived with consumer sentiment at levels previously reached during recessions, as a record share of households said this is a bad time to spend, according to the Bloomberg Consumer Comfort Index. The measure has reached minus 50 or less in nine of the past 10 weeks, an unprecedented performance in its 26-year history.
That reflected concerns about 9 percent unemployment, a sluggish housing market and slower third-quarter economic growth than previously estimated.
Still, the number of people shopping during the Thanksgiving Day weekend rose to a record 226 million from 212 million last year, the NRF said.
“There seems to be a bit of an exhale happening” with U.S. consumers, Ellen Davis, NRF vice president, said on a conference call Sunday. “They feel like it’s OK to spend a little bit more.”
People shopped in fewer destinations and they spent more money ― indicating they weren’t only buying merchandise advertised in circulars, she said. Department stores were a favorite destination, as they have been all year.
Macy’s Inc. Chief Executive Officer Terry Lundgren said he was struck by how many people in their 20s descended on the chain’s flagship store in Manhattan on Black Friday. “It was almost a continuation of whatever social experience they were having hours before,” he said.
More than half of shoppers bought clothing, the most popular category, followed by electronics, the NRF said.
The number of people shopping online and at stores on Thanksgiving Day jumped to 28.7 million from 22.2 million last year. About a quarter of shoppers visited stores by midnight of Black Friday, up from just 3.3 percent two years ago.
Holiday sales may rise 2.8 percent this year, or about half of last year’s 5.2 percent gain, according to the NRF.
