The frenzy of a much-hyped Black Friday failed to rescue retailers from a months-long slump, as November sales figures released Thursday showed yet another steep drop-off in consumer spending.
What was a disaster for retailers, however, could mean even more bargains for those consumers who have money to spend despite the recession. Many day-after-Thanksgiving-type sales haven't stopped, and experts say these promotions are sure to continue through the holiday season -- at a high cost for retailers.
Nordstrom Inc., which saw November sales fall 15.9% over last year, is still marking down merchandise and matching its competitors' prices. And the upscale chain has placed signs around its stores that indicate it means business: "Never pay more. We regularly shop other stores to be sure we have the lowest price on like items."
"Our forecast right now looks like things won't improve dramatically, so we'll continue to have value on the floor," said Nordstrom spokeswoman Brooke White. "Everybody's got the same interests at heart, we all want to sell merchandise."
Other stores are also aggressively vying for customers. At Kohl's Corp., competitive prices are key, Chief Executive Kevin Mansell said Thursday. "Consumers are focused on value, and we have incorporated that into our promotional efforts through the end of the year," he said.
Jerry Storch, CEO of Toys R Us Inc., said in an interview on Black Friday that the chain would continue to keep prices low "all the way to Christmas."
"No one could have predicted what occurred in terms of the financial crisis, but we've been planning all year to take an aggressive stance during the holiday season," he said.
According to a tally of 37 major retail chains conducted by the International Council of Shopping Centers, sales at stores open at least a year -- a measure of retail health known as same-store sales -- fell 2.7% in November over last year. Only a handful of retailers, including discount giant Wal-Mart Stores Inc., showed gains while most apparel and luxury stores tanked.
It was the worst month for retailers since at least 1969, when the index began. Excluding Wal-Mart, sales registered a huge 7.7% drop.
Retail experts said it could have been worse. Thanks to a better-than-expected Black Friday, "the November results were terrible instead of being completely horrific," said Ken Perkins, president of research company Retail Metrics Inc.
