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Reuters in New York

Heavy discounting took a toll on US retail sales during the Thanksgiving weekend as shoppers spent almost 3 per cent less than they did a year earlier, according to data released on Sunday by an industry group.
That could be an indication of a more difficult season for many retailers.
One bright spot, according to the data, was e-commerce, as online sales soared.
The National Retail Federation estimated the average shopper spent US$407.02 over the weekend, or 3.9 per cent less than during the same weekend last year, because of lower prices it said would persist through the rest of the season.
“Retailers will continue to aggressively promote their in-store and online offerings, looking to entice today’s very budget-conscious and value-focused shopper,” said NRF chief executive Matthew Shay.
The NRF said 141 million people went shopping at least once during the holiday weekend, up from 139 million last year.
But total spending was expected to reach US$57.4 billion for the four-day period – which includes Black Friday, the biggest shopping day of the year – down 2.8 per cent from US$59.1 billion over the same weekend last year.
The big deals will also dent profit margins, analysts said.
“Sales will go up, but gross margins are going to be down. Doorbusters were what people were shopping for, more than the regular-priced stuff,” said Ron Friedman, retail practice leader at the consulting firm Marcum.

	Doorbusters were what people were shopping for, more than the regular-priced stuff

	Ron Friedman, Marcum
The Thanksgiving weekend is an early gauge of consumer mood and intentions in a season that generates about 30 per cent of sales and nearly 40 per cent of profit for US retailers.
But many have given modest forecasts for the quarter. Wal-Mart Stores Inc said it expects no growth in its US comparable sales, and Macy’s didn’t raise its full-year sales forecast despite strong numbers last quarter.
The shorter holiday period this year – there are six fewer days between Thanksgiving and Christmas compared with last year – prompted retailers to begin offering bargains on Monday last week, earlier than usual, something Shay said likely pulled some sales forward to the first part of the week.
ComScore, an analytics firm, said US online sales rose 17.3 per cent on Thanksgiving and Black Friday, outpacing sales growth at brick-and-mortar stores. ComScore has forecast a 16 per cent jump in online sales for the season, helped by greater use of mobile devices.
Retailers are also being aggressive online, as they look to benefit from Cyber Monday, which falls on December 2 this year. Cyber Monday is the biggest sales day of the year for e-commerce.
JC Penney and Macy’s were among retailers that had already begun their “Cyber Monday” sales on Sunday, looking to keep the momentum going. Target was calling the occasion “Cyber Week”.
The NRF predicted 131 million Americans would shop online on Cyber Monday, compared with 129 million last year.


US Thanksgiving weekend retail sales dip as online spending jumps

Total spending for the four-day period fell 2.8 per cent from the same weekend last year. Photo: Reuters

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