Thursday, November 1, 2012

“Black Thursday” Shopping: Smart or Desperate?

Retailers are no longer willing to wait for you to digest the disgusting amount of turkey you consume on Thanksgiving before reminding you that you have to start buying things for Christmas and Hannukah. In recent days, Target (TGT), Kohl’s (KSS) and Macy’s (M) have all announced midnight openings for their Black Friday sales, but Wal-Mart (WMT) has just decided to do them one better. The retailing giant is planning to open up at 10 p.m. on Thursday night, and is offering to match any other retailer’s advertised price if you bring in the ad.

“We believe retailers are getting more aggressive this Holiday season as they try to increase their share of wallet with value-conscious consumers,” writes Citi analyst Deborah Weinswig.

Indeed, the frenzy over Black Friday also seems to be a response to the threat of online-only retailers like Amazon.com (AMZN). Even retailers like Wal-Mart, which are supposedly committed to Everyday Low Prices, are increasingly driven to entice consumers into their stores with events and promotions. Despite all its recent statements to the contrary, this appears to be another sign that Wal-Mart is a standard promotion-driven retailer.

Weinswig, for one, thinks the strategy could work, particularly as the company staggers its sales throughout Thanksgiving weekend, offering certain goods on discounts on different days.

“We believe that by staggering its deals WMT may keep customers shopping longer, which could drive incremental sales.”

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