'Black Friday' kicks off tight-fisted shopping season

NEW YORK - US shoppers officially kicked off the critical holiday shopping season with annual "Black Friday" promotions as a pressured retail sector competes over precious consumer dollars in the low-growth economy.

The shopping frenzy also triggered some violence. There was a shooting, a stabbing and a number of other disruptions, though no deaths reported as in prior years.

Foot traffic in downtown Manhattan was busy in the morning hours, but not at peak saturation levels. Still, there was a buzz of excitement in the air as consumer trekked in search of discounts of 40 per cent or more.

"At three or four o'clock in the morning, it was very crazy. We went with the flow," said Jason Flores, who was carrying bags from Macy's and Zara, among others. "It's best not to have a plan. It makes it more fun."

Retailers have expanded the "Black Friday" concept to new limits in 2013, opening ever earlier on Thanksgiving Day, pulling more shopping all-nighters and kicking off promotions up to a week before the big day itself.

Some big retailers, including Walmart and Target, reported brisk starts to the big shopping weekend. But analysts say it is still too soon to judge the performance of Black Friday, traditionally an important proxy for the retail sector and consumer strength overall.

The more ominous aspects of the annual shopping ritual were also on display.

Local media reported that police shot a suspected shoplifter in Chicago, while a man was stabbed in Virginia in a fight over a Walmart parking spot. YouTube carried a video of unruly crowds at a Texas store.

In New Boston, Ohio, a woman was "knocked down" at a Walmart and took herself to the hospital, a New Boston police officer said. The officer said the woman was not seriously injured.

Walmart also found itself the target of protests in Chicago, Dallas and other cities over low pay.

Organisers said tens of thousands of people marched nationwide, spread across 1,500 stores in 46 states. More than 110 people were arrested, they said.

"Walmart jobs should be good-paying jobs, family-supporting jobs," Walter Turner, pastor of the New Spiritual Light Missionary Baptist Church in Chicago, said after his arrest at a protest.

A Walmart spokesman defended the company's wages as "on the higher end of the retail average" and said the company promotes good performers.

This season's holiday shopping season is a full six days and one shopping weekend shorter than last year's due to the late Thanksgiving season.

Holiday shopping traditionally accounts for 20 to 40 per cent of an individual retailer's annual sales, according to the National Retail Federation.

One consequence of the Thursday launch to the weekend, however, was somewhat lower shopping volumes on Friday morning, said Morningstar analyst RJ Hottovy.

"Traffic is down a little bit," said Hottovy, noting that some shoppers may also have stayed away due to cold weather and increased online shopping.

Analysts say shoppers are a bit anxious following the October US government shutdown and near-default on US debt. On top of that, global economic growth remains tepid and US job growth has been unspectacular.

On the positive side, consumers have gotten a break with lower gasoline prices, which are 13 cents per gallon less than they were a year ago, according to the American Automobile Association.

Wealthier Americans are also feeling more flush, thanks to the appreciation of the stock market and higher housing prices.

Retailers have been even more aggressive than usual in cutting prices in order to lure in customers.

Walmart said during its most recent earnings report that it had big plans to "win for our customers and shareholders throughout the holidays" through aggressive promotions. Best Buy said it would match other competitors but warned profits may suffer.

The National Retail Federation predicted that holiday shopping sales will increase 3.9 per cent to $602.1 billion over the 2012 level.

That is better than the 3.5 per cent growth in the 2012 season, but below the six to seven per cent increases before the financial crisis.

Analyst Hottovy forecast that sales will grow at just three per cent this season. He cited higher payroll taxes and concerns that the new health care law will result in higher costs.

"I think the low-middle income consumers are still facing a number of pressures," Hottovy said. "We do expect a slowdown."

Chris Christopher, director of consumer economics at IHS Global Insight, predicted holiday retail sales will grow 3.2 per cent above last year's.

But the 2012 season was depressed by Superstorm Sandy, concerns about Washington budgets and the Newtown, Connecticut slayings at an elementary school.

The 2013 season "is going to be okay," Christopher said.