4 Things You Need to Know About Black Friday 2013

Black Friday sales have escaped from the confines of the day after Thanksgiving. An increasing number of stores this year will open for shoppers on Thursday -- and many have already started offering up deals to whet consumer appetites. What do the likes of Wal-Mart (NYSE: WMT  ) , Sears (NASDAQ: SHLD  ) , Home Depot (NYSE: HD  ) , and Zale (UNKNOWN: ZLC.DL  ) have in store for shoppers this year? And why's it all starting so early? 

Retailers always duke it out during the months of November and December since between 20% and 40% of annual revenues can come from this period. But this year's holiday season has a shortened calendar. And the National Retail Federation predicts that sales will only rise 3.9% compared to 2012 -- a drop from the more than 5% increases for the prior two years.

So the stakes are particularly high for retailers -- and that could benefit shoppers. Here's what you need to know about this year's holiday sales and the Black Friday deals at the end of the rainbow.

 

1. Why the early start? 

Because customers start buying this early. According to the NRF, more than 60% of holiday shopping last year occurred during the months of October and November. But the early bird deals come with some caveats.

Excepting one-day events like Wal-Mart's Nov. 1 kickoff event, the early bird sales tend to offer savings similar to sales run any other time of the year. Stores want customers to stay interested in the Black Friday sales so they'll still save the best deals for around Thanksgiving. 

2. Best early bird deals 

What bargains can be found now?

Cheaper, generic brand electronics such as flatscreen televisions have been marked down further. Case in point: Wal-Mart's 32-inch Spectre flatscreen for $179 (list price $299). That's because the stores can mark down these products to look like an amazing deal without actually losing a lot of money. 

Likewise, most of the superstores are running month-long toy sales. Wal-Mart, Toys "R" Us and KMart are among the stores offering monthlong deals based off Toy Book catalogs.

Zale is running an online early Black Friday sale offering 20% to 40% off select styles. And Home Depot has some appliance markdowns that include up to 30% off microwaves and 10% off ovens.

3. Here's when to shop for real bargains 

Select stores have started announcing their hours for the Black Friday kickoff and many have opted to start on Thanksgiving. Here's a look at some of the store hours that have already been announced:

Store

Sale Starts

Sale Ends

Toys "R" Us

Thursday 5 p.m.

Unknown

Macy's

Thursday  8 p.m.

Unknown

KMart

Thursday 6 a.m.

Friday 11 p.m.

Sears

Thursday 8 a.m.

Friday 11 p.m.

Source: BFAds and company press releases

Sears received some backlash when it announced that KMart would open at 6 a.m. on Thursday and stay open until 11 p.m. on Friday -- a full 41 hours of shopping. But stores open on Thanksgiving because customers will show up. According to NRF, 41.8 million people went shopping on Thursday last year -- up from 28.7 million the year before.And the early start has become necessary to keep a competitive edge. Retailers are dependent on earning the most money as possible during the holidays. 

4. What stores rely most on holiday sales? 

The retail sector as a whole is fairly dependent on holiday sale revenues. Last year, jewelry stores were most reliant on holiday sales, according to NRF, followed closely by department stores and electronics and appliances stores.

On an individual store basis, Wal-Mart's fourth-quarter net sales -- which included the holiday months -- accounted for 27% of the overall annual total. Sears' holiday quarter represented over 30% of its annual revenues, while Zale's was 35%. Home Depot's quarter accounted for about 24% of its net sales.

Will Black Friday 2013 end up in the red?

The success of this year's holiday season compared to last comes down to what kind of bargains the stores offer with the real Black Friday sales. If the stores offer better deals than last year, then the NRF's projection could prove conservative.   

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Read/Post Comments (6) | Recommend This Article (4)

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  • Report this Comment On November 10, 2013, at 11:39 AM, normgarry wrote:

    I worked in Circuit City back in 2003. "BLACK FRIDAY" was awesome before the big corporations actually started taking advantage of it - ultimately because it took them time to analyze how people shop and what they'd be willing to buy if certain price points could be met.

    #1 The "doorbuster items" will be snapped up by the first 100 people through the door.

    #2 Security services hired to control Black Friday sales herd people to the store like mindless cattle and ensure you won't get what you wanted unless you've camped out a day before - in the cold - and are one of the first 100 people on line.

    #3 The doorbuster TV's, Computers and other "highly marked down items" are typically one-off items designed specifically for Black Friday.

    HDTV models and Blu Ray players with less connections than a typical HDTV that isn't on sale.

    Computers with low-end specs that can't run graphic intensive software.

    #4 "SALES" aren't really "sales" anymore. Coupons aren't either. They are psychological devices used to get you to spend more money than you usually would. Black Friday is the same way. It is the weeks prior to Black Friday you'd probably find better deals - without the headache of waiting on ridiculous lines for crappy Chinese-made garbage.

    I just bought TWO Sanyo DP50843 1080p HDTV from Walmart. They used to be $498 but are currently $459

    I wanted to set up a guest room with a cable box and TV and take another TV to my office. The price was perfect. The TV's have great picture quality despite not being LED LCD, and they have 2 HDMI ports/ Optical out and 2 component inputs.

    Take a look at my TV on youtube "bigtruckseriesreview".

  • Report this Comment On November 10, 2013, at 9:25 PM, myrton wrote:

    know for my born freedom of the constitution and the freedom of speech ;do make a stupid mistake this yr but the buying these adds the over paid executives are still making more than is needed think about the prices where before the greedy sent your job to china so they could raise the prices to over paid saleries of 200,000 a yr .take your families to a knew level buy simple gifts [and for the ones that like happy holidays that is good but please in no way offend me by saying so I still believe in America think you

  • Report this Comment On November 11, 2013, at 12:02 PM, 12know wrote:

    So much for the holiday season. It's all about what a person can spend, as opposed to how long you spend with family and friends. I'm not a fan of the Black Friday brigade. And I really feel sorry for the people who work at stores that will be open during Thanksgiving. Do these retailers expect their employees to think of them as family, as opposed to their own families?

  • Report this Comment On November 11, 2013, at 1:07 PM, mayyyy wrote:

    I work at walmart. so now I will probably give up my tradition of having my whole family over for thanksgiving. Instead I'll be in a situation where being "thankful" doesn't exist........people forget the meaning of Christmas and Thanksgiving as soon as they walk through those doors........really? is that tv or game system more important? I'm just asking......please be kind to us, the workers that "have" to be there. thank you

  • Report this Comment On November 11, 2013, at 7:05 PM, dtl081349 wrote:

    Black Friday is for fools as better bargains can be had closer to Christmas.

  • Report this Comment On November 11, 2013, at 8:57 PM, Burstedbladder wrote:

    So far there's nothing me and my family needs. We have more than enough already. Why people spend and waste their money on extravagant gifts these days is a joke. A simple box of candy, pie, food dish, a book, or toy should be sufficient imo.

    Going into debt and spending tons of money you don't even have is a very foolish thing to be doing any time of the year, especially at Xmas and on birthdays.

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