Black Friday Retail Sales Edge Up Only Slightly

Last week was Black Friday and according to new reports, Americans spent slightly more than last year. Retail spending for the day after Thanksgiving rose 0.3% to $10.69 billion, up from last year's $10.66 billion.

Yahoo news reports:

Two factors behind the slim increase, a disappointment following bullish reports from stores Friday, were heavy discounts earlier in November and online shopping, which saw a big increase.

Chicago research firm Shoppertrak, which tallies sales in more than 70,000 retail outlets across the country, said the total was still a record for the day. It stood behind its prediction for spending to rise 3.2 percent for the season.

"It's hard to say Black Friday wasn't a success, it's just not the success we saw in the mid-2000s, when the day really became a phenomenon," ShopperTrak founder Bill Martin said.

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Late Back-To-School Shopping Lifts Retail Sales

During times of economic struggle it is not uncommon for new consumer trends to surface, the latest of which is late bargain shopping. Retailers saw stronger-than-expected sales in September as shopping held out for back-to-school clearance bargains. This is a trend that many expect to be repeated during the holiday season.

Reuters.com reports:

Department stores and luxury chains also posted forecast-beating results, helping push retail shares higher.

But retail experts warned that shoppers are still cautious as they draw up budgets for the holiday season, as unemployment remains high. That means they are likely to hold out for discounts again even if overall spending rises from 2009.

"It was a late back-to-school season that started slowly while shoppers waited for discounts," said David Bassuk, managing director at AlixPartners' global retail practice. "And it looks like they'll do the same for the holidays."

U.S. same-store sales rose 2.8 percent, according to Thomson Reuters data which tracks 28 top chains, beating analysts' estimates for a 2.1 percent increase. It was the 13th straight month of sales gains.

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Retail Sales Rise a Modest 2.9% at Major Chains

From LA Times.com:

The crucial back-to-school season got off to a slow start last month as retailers hoping for brisk sales of clothes, backpacks and school supplies saw tepid business and continued consumer frugality.

"The days of buying merchandise well before school starts are gone now. Kids would rather wait to see what the cool brands and styles are … and parents would rather put off spending until their kids will actually wear what they buy," said Marshal Cohen, chief industry analyst at market research firm NPD Group.

"Don't mark the back-to-school shopping season absent this year — it will just be a little tardy."

Major chain stores reported that sales rose a modest 2.9% in July compared with a year earlier, according to Thomson Reuters' tally of 28 retailers.

That was lower than the 3.1% increase analysts had predicted, and marked the fourth straight month that results either missed or came in at the low end of expectations, said Michael Niemira, chief economist at the International Council of Shopping Centers.

Oil Hovers Near $77 On US Economy, Crude Demand

From the Associated Press:

Oil prices hovered near $77 barrel Thursday in Asia amid signs of a slowing U.S. economy and weak demand for crude.

Benchmark crude for September delivery was up 16 cents at $77.15 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 51 cents to settle at $76.99 on Wednesday.

Oil has traded near $75 most of this year on mixed U.S. economic news — corporate earnings have rebounded but the unemployment rate remains high. On Wednesday, a Federal Reserve report said the economic recovery is slowing in some parts of the country.

Oil consumption also appears to be sluggish. Crude supplies grew by 7.3 million barrels last week, according to the Energy Department's Energy Information Administration. Analysts expected a drop of 2.3 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

Supplies of gasoline and distillates, which include diesel and heating oil, also rose.

Barclays Capital said in a report that the main driver of oil prices has been skittish sentiment about the economic recovery. "It may take a while before the ghosts from the previous crisis go away entirely."