Spend Wisely Today!

According to a National Retail Federation survey conducted over the weekend by BIGresearch, more shoppers visited stores and websites over Black Friday weekend – and spent more – than a year ago.

According to the survey, 212 million shoppers visited stores and websites over Black Friday weekend, up from 195 million last year. People also spent more, with the average shopper this weekend spending $365.34, up from last year’s $343.31. Total spending reached an estimated $45.0 billion. Early reports indicated that many shoppers were also buying for themselves - in addition to gifts - though mostly where they saw bargains.

As retailers leverage their websites to offer Black Friday prices to shoppers who didn’t want to fight crowds, the percentage of people who shopped online this weekend rose a healthy 15.2 percent, from 28.5 percent last year to 33.6 percent this year – a strong sign heading into Cyber Monday.

But retailers remain unsure how much people will spend before Christmas in an economy that's still bumpy. Shoppers, grappling with an unemployment rate of 9.6 percent, remain careful about spending and driven by deals.

Discounts, particularly early-morning specials, were deep enough that many shoppers say they bought more than they had planned. But some say that means they're done, and they spent less than last year. Does this mean that the euphoria about holiday spending will flame out?

I doubt it. I think once Cyber Monday is over and the retailers report their revenue numbers this Thursday, we will see the next round of discounts somewhere in the middle of the month of December. The psychology of money is powerful. It probably felt great for consumers to finally buy stuff this weekend – and it felt better to buy what they thought were “bargains.”

This reminds me of the phenomenon that occurred in the 90’s with auto financing. Once the manufacturers offered 0% financing with rebates, there was no going back. Any loan interest rate above 0% became unacceptable – and in the end unsustainable.

So let’s sit back and watch the ride. Maybe the new motto this year will be, “If you discount it, they will come.”

Happy clicking – all 106 million of you!