November 27, 2006


Spending up 19% in holiday kickoff (Mary Jane Credeur, 11/27/06, Bloomberg News)

Shoppers spent 18.9 percent more over the Thanksgiving weekend than in 2005, kicking off holiday gift buying with purchases of discounted widescreen televisions and clothes, the National Retail Federation said Sunday. [...]

Shoppers limited much of their spending to sale items such as Wal-Mart Stores' $997 37-inch LCD TV and Sears Holdings' discounted jewelry and toys, said consultant Howard Davidowitz.

Discounts may threaten profit margins in a quarter when retailers collect a third of their annual earnings.

"How much money can retailers be making on half-priced TVs?" said Walter Todd, who helps manage $850 million at Greenwood Capital in Greenwood, S.C. [...]

Laura Brown, 38, an Atlanta nurse, bought a 42-inch Panasonic plasma TV for $1,000 at Best Buy the day after Thanksgiving. The set was marked down from $1,700 and was "my gift to me," Brown said.

"It was shocking, because people were only buying doorbusters. You can't have people just come in and buy doorbusters and leave," said Davidowitz.

We all know that by March the discount price of today will be the wholesale price.

Posted by Orrin Judd at November 27, 2006 7:55 AM
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