As featured in The Wall Street Journal, Money Magazine, and more!
     

After Black Friday, Retailers Face a Less-Than-Joyous Holiday Season

This article was written by in Consumer. Add a comment.


Each year without fail, a relative of mine loads up on Best Buy stock just before the holidays. “It’s a sure thing,” he boasts, “because the stock always climbs from the Christmas revenue.”

But even with all the earlier-than-ever Black Friday sales and hubbub this year, including the aforementioned Best Buy issuing tickets for its doorbuster items starting at 3 a.m., holiday sales forecasts for retailers are down. Wal-Mart, Macy’s and JC Penney all adjusted their sales projections downward last week, and the National Retail Federation predicts that holiday sales will grow only 4% for 2007, versus 4.6% in 2006.

Holiday Shops

Besides general economic issues, reasons cited for the dimmer sales outlook include residual fear among parents regarding the safety of some of the season’s hot toys after a year marred by lead and product design issues. Interestingly, apparel sales are also predicted to suffer because of a lack of major 2007 fashion trends (no must-have items). Because the stock and housing markets have been down, high-end retailers dealing in luxury items are expected to be hit especially hard.

Tim Finley, former CEO of men’s clothing retailer Jos. A Bank, believes that is the holiday season goes as expected, we can anticipate significant consolidation of retailers in 2008.

Black Friday Halo Dims As ’08 Jitters Erupt [CNN Money]

Image Credit: Sister72

Published or updated November 21, 2007. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

Email Email Print Print
avatar
Points: ♦644
Rank: Dime
About the author

Along with her partner, Sasha owns and manage six residential rental units. Sasha endeavors to support the causes and organizations she believes in through more conscientious spending practices. View all articles by .

Leave a Comment

Connect with Facebook

Note: Use your name or a unique handle, not the name of a website or business. No deep links or business URLs are allowed. Spam, including promotional linking to a company website, will be deleted. By submitting your comment you are agreeing to these terms and conditions.

Notify me of followup comments via e-mail. You can also subscribe without commenting.

Previous post:

Next post: