Retailers hope for strong shopping season despite economy

By STACY VOGEL ( Contact )   Friday, Nov. 28, 2008
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— Tonya Monte is a serious Black Friday shopper.

The Evansville woman already had hit five stores by 7 a.m. today. She sent her husband, Ken Nelson, to wait in line with a cart at each store while she traveled back and forth filling the cart with toys and goodies for their 9- and 11-year-old daughters.

Though the couple might spend less on each other this Christmas, they have no intention of spending less on their daughters, they said.

“The girls deserve just as much this year as they do every other year,” Monte said while in line at Target.

Black Friday—so called because it’s the day many stores come out of the red and into the black—marks the traditional start of the holiday shopping season. Many retailers make 30 percent or more of their revenue and profit from holiday sales, said Jerry O’Brien, executive director of the Kohl’s Department Stores Center for Retailing Excellence at UW-Madison.

But the tanking economy has retailers worried this could be a blue Christmas. A national Gallup poll found Americans plan to spend an average of $616 on gifts this year, down nearly 30 percent from last year’s average of $866.

Sarah Benish, Janesville, said she’ll be more conscientious this year buying gifts for her teenage children. She said they’re getting one large gift and several smaller ones, whereas in the past they might have gotten several large gifts.

“Before, we didn’t even think about it,” she said.

Still, many shoppers interviewed by The Janesville Gazette this morning said they don’t plan to cut spending on gifts.

“Usually we don’t spend that much the rest of the year, so we can splurge at Christmas,” said Lisa Shada, Fort Worth, Texas. Shada was in town this weekend visiting family and got up at 4 a.m. today to shop, she said.

O’Brien said he doesn’t expect sales to be down from last holiday season, but he doesn’t expect sales to go up much either.

Retail sales were dismal in October, which could mean shoppers are delaying purchases until the holidays, he said.

“Some people were probably holding back on basic purchases, thinking there would be some great deals between Thanksgiving and Christmas, and I think they might be right,” he said.

O’Brien expects stores to be especially aggressive with deals this year, offering creative bonuses such as layaway and free shipping for online purchases. He recommended shopping early because stores might have ordered less inventory in anticipation of lagging sales.

Still, O’Brien said it could be an especially tough shopping season in Janesville, considering the General Motors plant is closing two days before Christmas.

“I think Janesville’s going to batten down,” O’Brien said. “A lot of it has to do with consumer confidence. Janesville has a special problem.”

O’Brien said electronic sales could be hit especially hard in Janesville. People who might have upgraded to a big-screen TV or the latest digital camera last year might make do with what they have this year, he said.

But Shane Davis, general manager of the Janesville Best Buy, said he’s hopeful the store will have a strong holiday season. The store still is seeing customers buying popular holiday products such as the Nintendo Wii, he said.

“Anytime we have the economic climate like it is, there is some uncertainty, but we’re still expecting to have a great holiday season,” he said.

A warning on buying gift cards

A viral e-mail making its way to inboxes warns shoppers not to buy gift cards from several chains, claiming the companies are closing stores and/or going out of business.

But you’re probably safe buying gift cards from most companies, said Jerry O’Brien, executive director of the Kohl's Department Stores Center for Retailing Excellence at UW-Madison.

Steve & Barry’s and Circuit City are the major chain stores in the Midwest that have recently declared bankruptcy, he said. Both are accepting gift cards for now, but they’re not obligated to under Chapter 11 bankruptcy, so you’re taking a risk if you buy cards from them.

Bottom line: Don’t buy a gift card from a company you don’t think will be around for long, O’Brien said.

More important, he advises shoppers to buy gift cards only if don’t charge fees and don’t expire.

“And if they aren’t advertising that they don’t have fees and don’t expire, you can probably bet that they do,” he said.

—Stacy Vogel




reader COMMENTS (30)
noretreat
Nov 30, 2008 at 9:46 a.m.
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I really do think the Walmart incident had a lot to do with the regional culture. I seriously have a hard time seeing that happen here. I had a minor injury on the sales floor this year and everyone in the store stopped to make sure I was OK. I am seriously proud of the people in our community and the graciousness I see on a daily basis.

hannah
Nov 29, 2008 at 10:53 a.m.
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momof5 wrote"I agree that customer service, especially at this time of year when employees were thrown into the mix haphazardly, lags often times. However, when you do go into a store and the clerk acknowledges you and says hi, please atleast say hi back. We aren't trying to be pushy or trick you into buying something you don't want/need--just trying to be nice. "

I totally agree. I have greeted people and they just stare at me rudely.Some even walk right past me looking for "the man" i guess theat knows everthing hahahhahahaha. Sorry but you came here for help and I intend to do so and say hello when you come in the door.If you really dont want help come when we are closed.

I cannot believe the rudeness of the walmart store death- WOW.
There were 2 killed at a toys r us I heard too. shot each other. wow is it worth it??!!! Just go online and shop if you cannot handle it. same deals usually.

bhansen99xj
Nov 29, 2008 at 7:27 a.m.
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Welcome to Walmart. Enjoy our cheap Chinese crap!

stomskid
Nov 29, 2008 at 4:10 a.m.
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i work at Orange Julius in the mall and we were so busy but everyone was pleasant and patient.

Unidentified
Nov 28, 2008 at 9:13 p.m.
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I agree with those who mention Menard's having good customer service. Everyone was extremely helpful. Considering how busy they were, I thought the day was well managed. In addition, Menard's actually offered some really good deals on low end products and had reasonable inventory levels. On the other hand, most of the other stores were big on electronics, but lacked in other areas or didn't have enough stock.

packrat
Nov 28, 2008 at 7:29 p.m.
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I don't need (or want) ANYTHING that would require me to risk the safety or the safety of my family in order to get a "deal".
***
These stores should be held fully accountable for any injuries or death due to this *insane* loss-leader marketing tactic.

JimPI
Nov 28, 2008 at 6:55 p.m.
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Ihavealife, I heard the same thing. Depressing and infuriating to me. I sincerely hope each and every person who contributed to that poor man's death is forced to live with the guilt for many, many years. Won't happen, I know. But, I wish it would.
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Momof5, the vast majority of customer service people I saw today were exceptional. Very friendly and helpful, despite being obviously harassed and frazzled. As I mentioned before, Kmart was my only truly negative experience from a customer service standpoint today. At several stores I was not only told where to find certain items but many times taken directly to the display. It is an oftentimes thankless job. Been there, done that. But I always try to express to the employee my sincere gratitude for their assistance. I'm just another face in the crowd but at least I'm (usually) not growling at them ;)

momof5
Nov 28, 2008 at 6:41 p.m.
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I agree that customer service, especially at this time of year when employees were thrown into the mix haphazardly, lags often times. However, when you do go into a store and the clerk acknowledges you and says hi, please atleast say hi back. We aren't trying to be pushy or trick you into buying something you don't want/need--just trying to be nice.
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I hope Santa found just thee perfect gift this year for me.

ihavealife
Nov 28, 2008 at 6:38 p.m.
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Jim...When customers were told they would have to leave the store because they were closing due to the death,they got mad and some refused.The police had to get them out of the store.Really what is wrong with people in this world ??

JimPI
Nov 28, 2008 at 4:55 p.m.
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I'm not whipped, not in the least. See, this way I can snag on all the cheap DVDs and other bargains for myself whilst shopping for gifts ;) Plus, my wife isn't quite the people person I am when dealing with crowds. I've done some shopping online and will probably do more this year than in the past. But, for me, I do like browsing through the deals at a brick and mortar store. I'm willing to take the good with the bad, I guess.
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Heard a news report that a Wal-Mart employee in NJ was trampled to death by a crowd of customers when he opened the doors at 5am. So tragic, yet says a lot about our society today. This guy lost his life because a group of people JUST HAD TO GET THEIR FREAKIN' TVs!

noretreat
Nov 28, 2008 at 4:54 p.m.
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I manage Game Crazy in Beloit, and I have to say that despite doing nearly double the business of black Friday last year, that on the whole today was exceedingly busy and remarkably pleasant. I didn't get cussed out once, which is a Thanksgiving miracle! I have many years of retail experience, and the people in the state line area are some of the most pleasant I have ever had the privilege of serving.

localmatters
Nov 28, 2008 at 4:43 p.m.
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Great report Ihavealife! Glad you enjoyed the day!

ihavealife
Nov 28, 2008 at 3:50 p.m.
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I was at Boston Store at 4am,got in and got what I needed.
Went to Kohls waited in line for 35 mins.
Shopko was next on stop,everything went find.
Target was the worst for other customers,I couldn't believe how the women were acting.I just stood and laughed at one.It made her very mad and I became her best friend.Then I really laughed and the words were on.All I could do was laugh at her,findly just walked away as she was still swearing.Not sure at who.

Starbucks had no working register,service was a little slow.Coffee was best as always.
Farm & Fleet was a mad house.Everyone was very nice.
Pier 1 wasn't busy at all.
Old Navy had a good number of customers,checkout went very fast.
TJMaxx was very easy also.
Milton ave was back-up'd for those waiting to turn into mall.
Cranberry Moon was very nice.
Was home by 11:00 and husband came out to help carry bags in,I had to tell him "Step away from the truck" When the doors came open he had a look on his face that was priceless:)
All in all it was a very good day for all:)
Happy shopping !!!!

woodsman
Nov 28, 2008 at 2:17 p.m.
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So in you women's eyes,i must be like a saint!! She had to work today,so i went by myself to do the black friday thing. I myself love looking at people & lines don't bother me at all. Gives me a chance to get out of the woods,love the animals "BUT",even i neeeeeed a break! LOL

luluberry_0981
Nov 28, 2008 at 2:14 p.m.
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I was at Walmart at 4:30 this morning and witnessed some of the rudest, most inconsiderate people I have ever seen! People running over others with their carts, not letting others through to look at things, horrible greediness! And don't even get me started on the parking lot. These people should be ashamed for the way they behaved, it was disgusting. (I was only there for a couple sweaters and jewelry btw)

localmatters
Nov 28, 2008 at 2:11 p.m.
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Back to the topic of the article...Farm and Fleet seems a bit slow this afternoon but the tire desk was still swamped. The Target lot was busy and the mall is still rockin'. That does surprise me. Other than the "doorbusters" from the anchors I didn't see the point of stopping. I'm glad to see it's busy, but I'm having a hard time understanding why. If someone's looking for deals on bikes, Michael's had a few today with financing to go with it. Michael's Bank and Bike. Anyone care to share any of their favorite finds today?

hannah
Nov 28, 2008 at 1:57 p.m.
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so my husband helps me with stuff. cleaning etc. i dont concider him whipped. I consider him a wonderfull husband.

garyprimer
Nov 28, 2008 at 1:27 p.m.
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And you people are all crazy. :-)

garyprimer
Nov 28, 2008 at 1:25 p.m.
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He's whipped. ;-)

localmatters
Nov 28, 2008 at 12:59 p.m.
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Well put Trojan. I wish my significant other would ride along but she's not into the whole Black Friday shopping thing.

TrojanVirus187
Nov 28, 2008 at 12:52 p.m.
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Just because a husband helps his wife out on Black Friday doesn't mean he's whipped. I'm sure he loves his wife very much and they each do compromising. That's what a relationship is all about; you do things for each other that you wouldn't be doing otherwise.
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That's one of the major problems with relationships and people in general these days. Your buddies will tell you that you're whipped because you're doing something for your wife. They tease you about it and before long, that husband no longer will do things for his wife. The compromises are gone and so is the relationship. Then you just become another statistic, you're just one more person who's marriage ends in divorce.

truthbtold
Nov 28, 2008 at 12:27 p.m.
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I too was pretty much done by the 1st of Nov. The W11 was threatened to be gone by Xmas so I made sure that was on my list. I found if I start early I was able to give my girls more.

Also,don't forget the internet also has black Friday deals.Check out Amazon..No people,no spending money on gas..stay in your P.J's and shop.

Happy Holidays Everyone!!

SarahB
Nov 28, 2008 at 12:25 p.m.
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(That was meant to be a joke by the way.)

SarahB
Nov 28, 2008 at 12:25 p.m.
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You people are all crazy.

becca_the_blogger
Nov 28, 2008 at 12:19 p.m.
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Black Friday is great for those who don't mind long lines, crazy, determined shoppers, impatient sales people ... the list goes on. The sales are indeed good. With an Amazon.com account w/ free shipping, I'll be shopping online this year. Good luck shoppers!

hannah
Nov 28, 2008 at 11:56 a.m.
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I am mostly done. I still buy stuff on sale threwout the year. I am was to impatient to deal with bad service and mobs of people pushing and shoving and some being rude. along with the associates. I go online to shop for some stuff too. Saves yuo from the impulse buying also.

localmatters
Nov 28, 2008 at 11:43 a.m.
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My usual routine is 5 am at Best Buy. This year is different. There wasn't a need at Best Buy (there never is but the wants usually win). I finally got out around 9. Grand total: $18.00 Great deal on Batteries at Farm and Barn and they still had a 100 pk of CD-R's at Office Max. I also stopped at Menard's but just to go the "round about way". I agree with the comment about the Menard's employees. There were many and they were helpful. I'm going to try to go local the rest of the day. Team is on the list...so is Michael's (cycle's that is) and maybe Luke's or Mac's for lunch. Once the madness of Friday is over, let's try not to forget about those retail owners who are also our neighbors. For those of you out in the madness -- ENJOY!!!

thediplomat
Nov 28, 2008 at 11:10 a.m.
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That guy is whipped. You would never see me out in a store on Black Friday!

JimPI
Nov 28, 2008 at 10:59 a.m.
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Before 10am, I managed to get to Wal-mart, Menards, ToysRUs, Kmart, ShopKo, and Radio Shack. Kmart was, by far, the worst in terms of customer service and selection. I was there within an hour of when they opened. I had a list of about 25 items and they were out of all but two of them. I was in the store for over a half hour and saw a grand total of three employees (not counting cashiers) throughout the entire store. The employee I finally managed to flag down told me herself that this was why Kmart has the reputation it does - poor service and poor selection. Menards was the opposite extreme. Very helpful employees who knew where everything was. While it is nigh impossible to find most items in Menards, the employees are always more than happy to point you in the right direction. Many other retailers could learn a lesson from them.

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