This weekend will be important for U.S. retailers. They’ll be counting their pennies carefully. With retail sales already down sharply from 2007, merchants are eager for a strong start to the holiday shopping season.
The day after Thanksgiving — now dubbed “Black Friday” — has become something of a ritualized cultural experience, and one of the biggest shopping days of the year. Many people view the day as a chance to grab stellar deals on Christmas gifts.
But will people be spending this year? With the economy wobbling like a top, will the American consumer come through to prop up flagging retail sales?
The merchants hope so, as do many economists, but a new study from the American Research Group shows that the amount Americans plan to spend on Christmas gifts this year is half what they planned to spend last year, and the lowest number in at least a decade.
If you plan to shop this weekend, check out:
- PC World: The insider’s guide to Black Friday bargains
- Yahoo!: Your ultimate guide to Black Friday 2008
- Price Protectr, which will alert you if the price drops on an item you purchased (in many cases allowing you to get a refund on the difference)
While some of my friends subscribe to the “take the day off to find bargains on Black Friday” school of thought, I’ve traditionally sided with another camp. On the day after Thanksgiving, I observe Buy Nothing Day.
For the past decade, I’ve elected not to shop on Black Friday. It’s one way for me to avoid consumerism. Subscribing to a consumerist mindset helped to put me in debt in the first place. I don’t begrudge others their bargains and shopping fun, but I choose not to participate. This year will be no different.
Ramit at I Will Teach You to Be Rich has taken things one step further. Rather than feel obligated to buy gifts you can’t afford, he says, why not do something different — like spend time with those who are important to you:
I’ve come up with a site that I hope you can share with your friends and family. It’s free, and it’s very simple, but the point is to share the idea that you can do something for the people you love without spending money.
At No Christmas Gifts This Year, you can send customized e-cards suggesting alternatives to buying gifts.
If the idea of abandoning gifts entirely is too extreme for you, consider creating homemade Christmas gifts this year.
Regardless of which path you plan to pursue — Black Friday, Buy Nothing Day, or No Christmas Gifts This Year — please spend responsibly. Buy only what you need and can afford. Don’t be lured into impulse purchases. Avoid debt. And most of all, enjoy the spirit of the season.
This article is about Choices, Economics, Marketing, Shopping
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@Bethh (#42)
The survey doesn’t ask people what they spent last year. Instead, every year it asks people what they plan to spend this year. The numbers in the table are the results for that question going back a decade. I have no idea how much people actually spend compared to what they plan to spend.
@Bill (#39)
Heresy!
Thanksgiving is my favorite “group” holiday of the year, but I hold birthdays sacred! I wish I was more diligent at getting people birthday gifts.
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I’m already seeing the news stories about the poor retailers and how it’s our patriotic duty to prop up the economy to keep them in business. We’re seeing the results now of peoples’ jobs being dependent on other people borrowing money to buy stuff they didn’t need–it was a pyramid scheme that had to collapse at some point, and it has.
I hope this leads to more talk about people living within their means–I guess they’ll have to, now that access to easy credit has been cut off, and maybe living within their means lasts long enough to become a habit.
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If you’ve got the time, and have a noise with a bargain, I don’t see what’s wrong with participating in Black Friday. You get things you probably would have ‘needed’ to bought anyway, but for cheap. I don’t get up at 4am and wait outside in line, but usually get to where I want by 9, fend off a little crowd, and save a bunch of money. Not a bad time.
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Even though I’m in a country in which we don’t celebrate Thanksgiving, I too shall be adhering to Buy Nothing Day, which I try to do almost every day!
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What if you are thinking of hitting the black friday sales to buy something for yourself? I want/sorta need a laptop so I’ve been keeping my eyes open. If any good sales pop up on Black Friday for laptops I might bite. Other than that, the few times I’ve ventured out were a disappointment. If you don’t go early the shelves will be picked bare of the hot, cheap items by the time you get there.
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I can say that I certainly saw tons of cars at the malls this weekend and the cash registers were cha-chinging at their loudest. Maybe people are just attempting to avoid Black Friday but consumerism seemed alive and well, my friends. I Do hope that people are learning to spend only on things they can afford and not just buy due to a sale. But we shall see!
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I might add that in addition to Buy Nothing Day, I also celebrate National Pie for Breakfast Day.
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Most of the “Black Friday bargains” in big retail stores like Best Buy and Circuit City are everyday prices at online stores like Newegg.com or Buy.com or other…
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@ JD
IMHO Birthdays are more for kids.
Christmas and Thanksgiving lend themselves to uniting far-flung family members. However don’t let me veer off-topic.
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I never go out on Black Friday. Years ago, when I was in college I worked at WalMart over the holiday season (which for them is August thru December). We stocked all night on Black Friday ( we came in at midnight even tho our regular shift normally began at 10 pm so WM didnt have to pay us OT for working the Holiday)
There were several RV’s camped in the parking lot before we got there at midnight, and by 4 a.m. there were a couple dozen people in line. We were supposed to open at 6, but since some of the night stockers were register trained, they decided to open the doors at 5 a.m.
When they opened the doors, people rushed them and nearly got trampled. Bread machines were the hot item and there were only 10 in the store, so people were actually following folks around who had gotten them and if the person walked away from their carts they would grab the item out of the person’s cart and head for the checkout. I never saw people so mean, so selfish and show complete disregard for the people around them. Whatever happened to being decent?
That was the last Black Friday I ever participated in (1993). Now, I sleep in, I stay home, maybe catch clips of the parade, eat leftovers, etc.
I don’t really agonize too much over christmas. I travel a bit and throughout the year I look for items that are a bit unique that I think the person would like. usually by October I have assembled most of what I am giving to people. This year I am making some crafty type stuff to go along with the things I have already gotten.
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Thank you for posting this – the timing is impeccable and I’m with you on BND. Although dressing up like a zombie is a bit much (and defeats the purpose unless you’re the sort of person who keeps zombie gear and makeup on hand)…
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My tradition, is essentially a buy nothing day (at retail stores anyway). My boyfriend and I have a tradition of getting our christmas tree on Black Friday and spending the day together decorating it and making the house festive for the holidays. This means no buying new ornaments/decorations either, I usually save that for after christmas when the real deals happen.
This way, we avoid the busy parking lots, stores and stressed out people but are still festive in our own way. And of course, have turkey dinner leftovers.
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I have zero desire to shop on Black Friday. I worked mall retail for years and always dreaded that day. Now I have PTSD (Post Thanksgiving Stress Disorder!)
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People spent upwards of $1000 on Christmas presents? Wow. I guess we’ve done that once (last year), but that was a one-off (my wife’s computer was old and dying, so I decided to get her a new one). Normally we only spend $300-$400. There’s usually a few homemade gifts in there (my wife has made a crocheted wrap for her mum, and spun some wool for my mum last year). Then again, I guess my in-laws spend over a thousand every year on Christmas, so maybe I can believe it.
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I rarely shop retail period. I will be trolling on “Cyber Monday” to see about purchases I have been putting off and a couple of random Xmas gifts.
As far as my budget, I set aside $ every month and whatever is in that account is what is spent on my list of people. I stretch it out by buying each person/family something and making them something. eg: DH’s sister and husband are getting a cookbook (handmade) and a pair of movie tickets (I get a discount through work). It stretches my money without appearing cheap.
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Ick. I hate shopping enough with normal crowds (the ONLY exception being a bookstore), let alone with sleep deprived, half-crazed bargain hunters. I’ll be home, cozy warm in my bed, thankyouverymuch. My boyfriend is a much braver soul…he goes out every year trying to find deals on computer stuff.
I often wonder how many people go out on Black Friday and spend ridiculous amounts of money buying stuff that is on sale just because it is on sale and not because they need it or really have an idea of who to give it to (yet)?
My family is also considering going giftless this year. Or doing a combined charity donation.
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Since Circuit City went under a few months back they have been having sales better than black friday!
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I’m not planning to shop on Black Friday. I’ll be at work on Thanksgiving and the next day, making triple-time. Even after my 20% 401(k) contribution and taxes, it will be more than enough to cover my holiday shopping, even if I have to pay full price.
Not that I would go shopping even if I weren’t working. I hate shopping and crowds, so Black Friday shopping is kind of my worst nightmare.
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Our mortgage will be paid off in March; therefore, we’re going to relax and spend about twice as much as we would normally on Christmas this year.
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I forgot to add that all of our purchases will be made with cash. No credit purchases at all. And no venturing out on black Friday!
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I’ve worked in retail for 15 years, and standing in your store, about to unlock the doors or open the gate on Black Friday is like opening the floodgates to hell. It is a horrible day to work, customers are rude, pushy, cranky, and tired, not to mention most don’t understand the concept of a “doorbuster” (namely that there are very few of these items), and associates are overworked, overstressed, and had to cut their Thanksgivings short because they had to wake up at the crack of dawn to go to work.
The other thing that amuses me about Black Friday is that, in all my years in retail, across a variety of “genres” of stores, it has never been the day with the highest retail sales. That is almost always the Saturday before Christmas. Most places nearly double their “Black Friday” numbers the Saturday (or even a Wednesday, depending on when Christmas falls) before Christmas.
I personally opted out of holiday gift giving all together a few years ago, and most of my family quickly followed suit. I work 50-70 hour weeks in November and December. In retail. The last thing I want to do is shop. We focus on getting the family together and having a nice meal and some time together.
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When I first came to USA from India, I could not wrap my head around the concept of Black Friday – I could not believe that people would stand in line for hours, most of the time in the cold, to BUY stuff. After 10 years in the US, the idea does not seem so crazy any more and I even feel a little curious about the experience. An example of how consumerism slowly pulls you over to the dark side!
Thanks to this timely article and the comments about shopper meanness, I will stay home once again. I guess BF is best experienced vicariously.
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I’ve always viewed “black Friday” as something to be avoided.
Like the black plague.
But “Buy Nothing?”
How about a charity based thrift shop, or craigslist from someone trying to raise funds, or your locally owned shop?
I’m conflicted on this one. I follow “The Compact,” (buy nothing new) but also see that some purchasing is necessary to keep the economy afloat.
But up at 4:00 A.M.?
Never. No how. Not if my life depended upon it.
-Katy Wolk-Stanley
The Non-Consumer Advocate
“Use it up, wear it out, make it do or do without.”
http://thenonconsumeradvocate.wordpress.com
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i can’t stand getting up before 9 or go grocery shopping on the first of the month… i’m surely not doing to do the black friday thing.
i’m seconding the suggestions made by janet, katy, and suec. if you want to ward off these consumer habits, do the opposite. volunteer or donate! do something nice for your family and community. and if you must spend, why not put it where it’ll do some good, like the goodwill, salvation army, out of the closet, etc.
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I still don’t believe there’s a real recession, considering I went to the mall a WEEK ago and traffic was backed up all the way to the interstate! So I decided to forgo the mall trip and as I was driving past the mall, the entire parking lot was full. And this is the biggest mall in Nashville we’re talking about. I really don’t see the recession around here.
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I’ve never understood or participated in the Black Friday shopping experience. Even before I changed my personal finance habits spending the day after Thanksgiving with a big crowd fighting over bargains never appealed to me. We will be on vacation the next 4 days so while we’ll be contributing to the economy we won’t be shopping.
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Well, it is really too bad the the economy has to be terrible in order for consumers to calm down and spend less.
The truth be told, most people’s personal economy is and was ALREADY messed up. Most people live 2 paychecks away from bankruptcy (rather the economy is “good” or “bad”)
So I guess that people have to be living on tuna fish and peanuts before they say to themselves, “hmmmm maybe I shouldn’t buy all of these items”. “Maybe there are other more important things in life”.
You see, regardless of the current situation, consumerism is never good. Which is why I have always supported Buy Nothing day. (without the official name)
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I made a calendar template for 2009 that is easy to print & make for a frugal gift. I’m making it available for $2 and you can make an infinite # of calendars with it. A good solution for saving money.
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Well, I’m appalled, but considering some of the comments here, I guess it’s not too surprising that this year’s Black Friday was actually distinguished by shoppers trampling a Wal-Mart employee to death. The poor man was only a temporary employee, too. And the customers were pissed off that the police were shutting down the store as a result.
J.D., I’m with you. All due respect to Bill @39, but I’d rather buy/make/give someone a birthday remembrance than a Christmas present. I like being able to say that a day is important to me because someone special to me was born on that day. I’m happy to celebrate Christmas by gathering with my family and sharing activities and meals; if I have to choose between marking one day or the other with a present, I’ll choose one person per day, rather than everyone at Christmas. But it’s nice not to have to choose.
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@ La BellaDonna – I cant believe that customers were pissed off that the store was shut down. If I was there (though I would never shop brick and mortar on Black Friday or Wal*Mart at all for that matter) I would have been sickened enough to head straight home after leaving a bouquet in front of the store and later sending money to the family.
What happened to humanity?
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@Carla – What happened to humanity?
Apparently, it went on sale.
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