Thanksgiving shopping crowds 'good not great'; online sales strong
Early discounts at stores and online included buy one get 50 percent off on the second "Star Wars" toys at Target.
Retailers across the United States offered early Black Friday discounts to lure bargain-hunters on Thanksgiving eve, but crowds in brick-and-mortar stores were subdued even as online sales jumped.
"It's still early, and from what we are seeing so far the crowds are good but not great," said Craig Johnson, president of Customer Growth Partners. The retail consultancy has 18 members studying customer traffic in different parts of the country.
The rush on the night of the U.S. holiday, a month before Christmas, reflects the new normal in U.S. holiday shopping, which was traditionally kicked off the next day, Black Friday.
In an effort to attract the most eager holiday shoppers and fend off competition from Amazon.com, U.S. retailers have increasingly extended their holiday deals by opening stores on the evening of Thanksgiving.
This hurt customer turnout on Black Friday last year, a trend analysts and consultants expect will repeat this year.
"I can wait until tomorrow but it's more exciting today," said Daipayan Deb, a shopper in his mid-thirties at a packed Wal-Mart supercenter on the outskirts of Pittsburgh. "Previously, I used to start shopping on Black Friday, but now it's Thursday."
Early discounts at stores and online included buy one get 50 percent off on the second "Star Wars" toys at Target, $200 off quadcopter drones at Best Buy Co Inc, a 50-inch Samsung smart TV for $499 at Wal-Mart Stores.
Shoppers in the United States spent more than $1 billion online, 22-percent more than last year, between midnight and 5 pm ET on Thursday, according to the Adobe Digital Index, which tracked 100 million visits to 4,500 U.S. retail sites.
As much as 20 percent of holiday shopping is expected to be done over the Thanksgiving weekend this year, analysts said. The four-day shopping burst will help set the tone for the rest of the season, signaling to retailers whether they need to drop prices or change promotions.
Kimberley Turner, a mother in her forties who was shopping with her young son said she found the discounts less compelling. "I actually think the deals were better last year," she said.
Online discounts averaging 23 percent are below last year's 25 percent, but prices are expected to drop as more Black Friday sales come on board, said Tamara Gaffney, principal research analyst at Adobe Digital Index.
The shopping season spanning November and December is crucial for many retailers because the two months can account for anywhere from 20 to 40 percent of their annual sales.
Shoppers are expected to be cautious with their spending again this year. The National Retail Federation is expecting holiday sales to rise 3.7 percent, slower than last year's 4.1 percent growth rate, due to stagnant wages and sluggish job growth.