Shoppers hit stores as holiday season revs up

updated 4:57 p.m. ET Nov. 27, 2009

NEW YORK - Americans took advantage of deep discounts on toys and TVs with some renewed vigor in stores and online on Black Friday after a year of concentrating their spending on basic necessities.

Though the first numbers won't be available until Saturday, early reports indicated bigger crowds than last year, with people buying more and even throwing in some items for themselves.

It was an encouraging sign for retailers, which have suffered through a year of sales declines, and perhaps also for the broader economy, which could use a kickstart from consumer spending.

In Chicago, Dan Montgomery and his wife carted bulging Macy's bags, proclaiming the department stores had "killer deals." Their favorite buy? A set of two skillets for $19.99, marked down from $100.

Still, mall operators said more shoppers were sticking to making purchases in cash and debit cards instead of credit. "I like cash because when you're out of cash, you're out of cash. And you don't have the hangover in January," Montgomery said.

Big day for retailers
Worries about jobs clearly were on shoppers' minds. Most people buying for themselves were picking up practical things that were deeply discounted such as pillows, pajamas and coffee makers, according to stores and analysts.

"With the layoff there have been a few cutbacks, but with the great sales they're offering this year, I think it's, overall, going to be a great Christmas for my two granddaughters," said Ernest Bell of Marietta, Ga., who was laid off in April from his job as an information technology support representative and was at the local Walmart on Friday.

Black Friday, which marks the start of the U.S. holiday shopping season, gets its name because it traditionally was the day when huge crowds would push stores into "the black," or profitability. But the weekend doesn't necessarily predict spending for the rest of the season, which accounts for as much as 40 percent of annual sales and profits for many stores.

Online, Walmart.com, Amazon.com and other online retailers also grabbed for a piece of the action, pushing deals on Thursday and even earlier in the week. Several large retailers, including Walmart and many Old Navy locations, even opened on Thanksgiving.

Those stores now have to figure out how to keep people coming back through Dec. 25.

Though there were isolated reports of squabbles, the pre-dawn crowds were generally calm. Stores took extra precautions to control the throngs after a Walmart worker on Long Island was trampled to death last year on Black Friday.

Deals lure shoppers
Analysts monitoring the malls said shoppers were less frenetic, having researched deals before going shopping. Extended hours also gave shoppers more time to grab deals both online and in stores than a year ago. Most Walmart stores were open on Thanksgiving to prevent the mad dash of shoppers for its Friday 5 a.m. specials.

ShopLocal, a subsidiary of publisher Gannett Co., on Friday said traffic was up 27 percent at top retailers' online sites featuring their Black Friday ads.

Video   Black Friday shoppers turn out in full force Nov. 27: On Black Friday, NBC’s John Yang reports on whether cautious consumers raced to the stores for early morning sales during  troubling economic times. Nightly News

Stores were encouraged that shoppers appeared to be a little freer with their spending. Best Buy, Sears Holdings Corp. and mall operators Taubman Centers, Mall of America and Simon Property Group offered signs people were buying more than last year.

An average of about 1,000 people were in line for midnight openings at Toys R Us stores, CEO Gerald Storch said.

Even luxury stores, which generally aren't the big attractions for Black Friday, had brisk traffic, according to analysts.

More than 5,000 people were at Macy's Herald Square store in New York early Friday, slightly more than last year, Macy's CEO Terry J. Lundgren said. Among the most popular items were Tommy Hilfiger $99 bomber jackets, marked down from $450.

Dondrae May, a manager at a Best Buy in Framingham, Massachusetts, said shoppers started lining up at 4 p.m. Thursday — 13 hours before opening. He said shoppers were filling their baskets with more items than a year ago, when they were shellshocked after the financial meltdown. The biggest draws were laptops, TVs and GPS systems, he said.

The chain had sold out of all of its early morning specials within two hours of the 5 a.m. opening, spokesman Scott Morris said.

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