November 21, 2014--Best of Behind: Black Friday

From November 25, 2012, here's a report about Black Friday. I mentioned Occupy Wall Street. Remember them? I hadn't thought about them for some time. How easy, how quickly we forget--

Every year all the newspapers and every TV station run reports about Black Friday, the day retailers hope that on their P&L statements they will finally begin to show a profit, move from the red into the black. 

The stories are always about how much sales are expected to increase over the year before, how early the stores will be opening, and then the frenzy when the doors finally are opened and shoppers--many of whom have been lined up for days--literally trample each other in a race to buy the latest flat-screen TV for 75% off.

This year, thanks to Occupy Wall Street which, if nothing else, has raised awareness about growing economic inequality, some of what is being reported includes inequalities in holiday shopping itself. Would the following have appeared even in the "liberal" New York Times--replete this time of year with ads for Tiffany and Rolex--if not for the Occupy folks?

One the front page, above the fold, under the headline, "Opening Day For Shoppers Shows Divide," the Times reports:

As the busiest retail weekend of the year began late Thursday night, the differences between how affluent and more ordinary Americans shop in the uncertain economy will be on unusually vivid display.

Budget-minded shoppers will be racing for bargains at ever-earlier hours while the rich mostly will not be bothering to leave home.

Toys “R” Us, Wal-Mart, Macy’s, Kohl’s, Best Buy and Target will start their Black Friday sales earlier than ever—at 9 and 10 p.m. Thursday night in some instances--with dirt-cheap offers intended to secure their customers’ limited dollars. A half a day later, on Friday morning, higher-end stores like Neiman Marcus, Saks Fifth Avenue, and Nordstrom will open with only a sprinkling of special sales.

The low-end and midrange retailers are risking low margins as they cut prices to attract shoppers, while executives at luxury stores say that they are actually able to sell more at full price than in recent boom years.

“We’re now into a less promotional environment than we were before the recession,“ said Stephen I. Sadove, chairman and chief executive of Saks. In the third quarter, for instance, Saks reduced the length of an annual sale to three days from four, and excluded the high-margin category of cosmetics from another regular sale.

The Times goes on to note that Neiman Marcus, via their "fantasy" catalog, which traditionally features very high-end stuff, this year, within 50 minutes, sold out of Ferraris at $395,000 each. All 10 of them.