More Consumers Expected to Shop on Black Friday
St. Louis, Arecent Maritz Poll found that one-third of respondents (37%) plan to shop on the day after Thanksgiving, up from 34% last year.
The survey also showed that respondents with household incomes of $100,000 or more will shop at significantly higher levels (45%) on Black Friday than those in the lowest income group of less than $25,000 (30%). In addition, those who plan to shop on Black Friday said they will spend more overall on their holiday purchase—$790 compared to $637 for all shoppers combined.
Black Friday also has generational implications with the majority of Gen Y respondents (59%), as well as a significant portion of Gen X (46%) planning to shop. Only a small percentage of Boomers (23%) and the Silent Generation (21%) will venture out on Black Friday.
According to the survey, respondents said they plan to shop the following stores during the holiday season: Wal-Mart (63%), Target (57%), Best Buy (43%), K-Mart (28%), Kohl’s (27%), Macy’s (25%), Sears (23%), Circuit City (21%) and Victoria’s Secret (17%).
Study: Premium food popularity growing
LYON, France A Reportlinker.com report determined that retail sales of gourmet, specialty and premium foods and beverages are growing at much at a faster pace than those of the overall food and beverage industry in the United States, surging 10.9% to $59 billion in 2007 and maintaing a compound annual growth rate of 11.1% for the 2003 to 2007 period.
Greater availability of gourmet and premium products, growing interest in world cuisines and flavors, the association of high-quality ingredients with health and wellness, overlap of gourmet and natural/organic, the supermarket industry’s focus on upscale “fresh formats,” higher disposable incomes among U.S. consumers, and product positioning as affordable luxuries have enticed the consumer and driven sales. Such factors have helped produce a growing population of willing-to-spend consumers who are looking for foods that are more adventuresome and yet more nutritious.
Gap Inc. October comps fall
SAN FRANCISCO Gap Inc. today reported a comparable-store sales decrease of 8% for the four weeks ended Nov. 3, compared to 7% for the period ended Oct. 28, 2006. The company reported net sales of $1.23 billion for the October 2007, which represents a 1% decrease compared with net sales of $1.24 billion for the same period last year.
By segment, comps for Gap North America fell 7% versus a 4% drop last year, Banana Republic North America comps were down 2% versus a 2% growth last year, Old Navy North America comps dropped 11%, same as last year, and international comps were down 6% versus a decrease of 8% last year.
“While comparable-store sales were down in October, merchandise margins were significantly above last year,” said Sabrina Simmons, evp of Gap Inc. finance. “The results reflect our stated strategy of managing inventory tightly to support margin improvements.”
For the thirteen weeks ended Nov. 3, total company net sales were $3.85 billion, which is flat as compared to net sales of $3.85 billion for the thirteen weeks ended Oct. 28, 2006. The company’s third quarter comparable-store sales decreased 5% compared with a decrease of 5% in the third quarter of the prior year.
For the third quarter of fiscal year 2007, Gap Inc. expects diluted earnings per share to be 28 cents to 30 cents, as the company continues to make progress on its strategies of driving earnings with healthy margins and controlling expenses.