US shoppers snapped up bargain basement deals on the day known as Black Friday as desperate retailers slashed prices in hopes of escaping a deepening slump.
Many shops opened before dawn and already by 8am New York’s 34th Street bustled with tourists and locals toting huge paper bags.
“Give them what they want — and hope for the best,” was how industry watcher Women’s Wear Daily summed up retailers’ strategy.
PHOTO: AFP
Clothing store Ann Taylor promised 20 percent off everything bought before noon, Lane Bryant offered “buy one get one free” and Banana Republic 40 percent off.
Frantic crowds poured through New York’s much-loved department store Macy’s, where display windows featured puppets in picture-postcard Christmas scenes.
Frieda, a marriage registrar from the Netherlands, emerged astonished at the bargains.
“I bought Levis jeans for my sons. They cost US$30 each and in Holland they cost at least US$150,” she said.
Katrina Chapman, a British accountant, said her husband had scooped up a Ralph Lauren suit for US$200 and Calvin Klein shirts for US$20 — a fraction of the price in the UK.
For the Chapmans, Macy’s was just the beginning of a day in New York’s department stores.
“We got here at 6:30am. I think we’re going to go and have breakfast and then head off to Bloomingdales,” Chapman, 32, said.
But if Macy’s was crowded, many other stores along 34th Street were not. Only five people stood waiting for Banana Republic to open.
A huge proportion of people shopping also appeared to be tourists, reflecting what economists say has been a crucial source of support for retailers.
Whether US shoppers will come to the retail economy’s rescue is still not clear.
A poll published on Friday in USA Today showed that 33 percent of consumers plan to cut spending this year, about 34 percent will spend the same as last year and only 6.9 percent plan increases.
Student Erika Pu, 20, said she was shopping, but carefully.
“I’m buying Christmas presents. You still have to do that, don’t you? But I don’t think people are going to be buying the really expensive stuff,” she said.
Her friend Carlos Ventura, a 23-year-old chef, said the economic crisis had already taken a bite out of his income and that he wouldn’t buy anything at all.
“Now I’m only cooking two or three days a week, where two months ago it was five, six days a week. I guess companies aren’t wanting to spend money on entertaining anymore,” he said.
Third quarter results leading up to Black Friday were a bloodbath for many major retailers. And some chains, including electronics goods stalwart Circuit City, have already filed for bankruptcy.
A senior executive at Best Buy, another electronics chain, put on a brave face.
“I think there’s people out and they seem to be having a great time engaging with our employees and I think there’s an optimism in the stores today,” Best Buy president Brian Dunn told NBC television.
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