Holiday Weekend Sales Fell 11%--NRF

By Shelly Banjo 

Retail spending over the Thanksgiving weekend fell 11%, its second straight annual decline, according to the main industry trade group, a sign that flashy discounts during the four-day shopping bonanza weren't enough to prompt increased sales.

Total spending from Thursday through Sunday sank 11% from a year earlier to $50.9 billion, according to the National Retail Federation. Shoppers spent an average $380.95, down 6.4% from $407.02 a year earlier.

NRF CEO Matt Shay attributed the drop to a combination of factors, including the fact that retailers moved promotions earlier this year in attempt to get people out sooner and avoid what happened last year when people didn't finish their shopping because of bad weather.

He also attributed the declines to better online offerings and an improving economy where "people don't feel the same psychological need to rush out and get the great deal that weekend, particularly if they expected to be more deals," he said.

Retailers like Wal-Mart Stores Inc. and Target Corp. have been pushing their Black Friday deals earlier in the week and online. Target offered some of its deals in stores and online on Wednesday. Wal-Mart started offering Black Friday sales on the Monday before Thanksgiving.

The retail trade group said the number of people who went shopping over the four-day weekend declined by 5.2% to 134 million, from 141 million last year.

Despite many retailers offering the same discounts on the Web as they offered in stores, the Internet didn't attract more shoppers or more spending than last year. Online sales accounted for 42% of sales racked up over the four-day period, the same percentage as last year, though up from 26% in 2006, the trade group said.

Shoppers spent an average $159.55 online, down 10.2% from $177.67 last year.

The survey, conducted November 28-29, 2014 by Prosper Insights & Analytics for NRF, polled 4,631 consumers and has a margin of error of plus or minus 1.5 percentage points.

"A highly competitive environment, early promotions and the ability to shop 24/7 online all contributed to the shift witnessed this weekend," Mr. Shay said.

Write to Shelly Banjo at [e-mail]

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