Black Friday delivered its usual frenzy yesterday, but retailers are still feeling uneasy about the crucial holiday season.
Best Buy CEO Brian Dunn said he expected a “tough” Christmas despite big crowds that swarmed stores in search of bargain-priced big-screen TVs, DVD players and appliances.
At the Macy’s flagship on Herald Square, shoppers were laden with shopping bags, but CEO Terry Lundgren’s tone was reserved.
“I don’t think necessarily that customers are going to spend more than they spent last year,” Lundgren said.
That’s particularly pathetic since holiday retail sales last year fell 2.2 percent — their biggest decline since at least 1970, according to the International Council of Shopping Centers.
On the bright side, retailers appeared to have made smart bets on inventory, said Lazard Capital Markets analyst Todd Slater. He expects fourth-quarter margins “will continue to meet high expectations.”
Evidence trickled in that unemployment is weighing on consumers. At malls across the country, industry executives said shoppers were breaking out fewer credit cards and making more cash purchases.
Luxury stores haven’t traditionally staged big Black Friday events, but Saks Fifth Avenue’s Manhattan flagship yesterday offered discounts of 40 percent and more between 8 a.m. and noon.
“The big question is, will shoppers keep spending after Black Friday is over?” said Britt Beemer, president of America’s Research Group.
A recent survey by the retail consultant found that consumers are heading into Christmas with less desire to buy gifts for themselves. They’re also planning to splurge on fewer people.
There will still be toys under the Christmas tree for the kids, but clothing, electronics and appliances are likely to be weak, Beemer said.