Hold-Back Friday
Financial Worries Subdue Shoppers On Day of Discounts

By Ylan Q. Mui
Washington Post Staff Writer
Saturday, November 24, 2007

Concerns about the economy loomed large in shoppers' minds yesterday as they hunted for bargains on items as varied as consumer electronics and cashmere scarves during the unofficial kickoff to the holiday season.

The shopping marathon known as Black Friday began at 5 a.m. yesterday for sisters Dionedra and Cassandra Dorsey of Alexandria. Starting position was a Target on Richmond Highway. The second lap was at J.C. Penney. By 9 a.m., the sisters were on their third wind at Toys R Us, hunting for bargains such as a Fisher-Price Smart Cycle for $99.

"Cheaper than at Wal-Mart," Dionedra Dorsey said.

Just then, an eavesdropper interrupted. She had seen the Smart Cycle at Wal-Mart for $89. The Dorsey sisters looked at each other, eyes wide. According to their research, it was $119 at Wal-Mart.

"But I'm from Florida," the woman said, "so maybe it's not $89 here."

The sisters looked relieved.

The early start was key to helping the Dorseys stretch their dollars further. Like many shoppers this holiday season, the sisters have kept their budget the same as last year even as the number of presents they need to buy has grown. The cost of gasoline, coupled with falling home prices and mortgage interest-rate increases, has many shoppers making a budget and checking it twice.

According to a survey by the National Retail Federation, a trade group, as many as 133 million people are expected to have gone shopping by Sunday, down from 140 million last year. Spokesman Scott Krugman said retailers' discounts could help drive traffic by enticing shoppers concerned about the economy. The group predicts that holiday sales this year will grow by 4 percent, to $474.5 billion, the smallest increase since 2002 and below the industry's 10-year average of 4.8 percent.

"We do think that more shoppers are going to be bargain hunters this year," Krugman said. "Retailers are going to have to keep pace."

At Circuit City in Rockville, Cathy Sharma browsed the flat panel TVs but debated whether to wait for a better deal. She is trying to spend 10 percent less than last year, when she spent between $3,000 and $4,000. Sharma, who lives in Potomac, said she is worried about the stock and housing markets. Her family has money tied up in both.

"The value of my house has tanked," she said.

William Sakala was so determined to get a good deal that he went to the Best Buy in Rockville twice. He arrived on Thanksgiving at 5 p.m., waited all night and was one of the first customers in the store when it opened. His target: a Sony laptop package he snagged for $499 instead of the $1,078 it usually costs. While he made a beeline for the computer, his wife went for the DVDs. After they were finished, they went to Dunkin' Donuts and then home to sleep.

But Sakala, who lives in Pennsylvania and was visiting family in Montgomery County, was not done. He came back in the afternoon for more DVDs.

"I wanted to see what they had left," he said.

Several retailers reported consumer electronics as the hottest category of the day. Target spokeswoman Lena Michaud said early reports from stores showed customers clamoring for a 37-inch flat panel TV for $549 and an eight-megapixel Kodak digital camera marked down from $149.99 to $89. At some locations, as many as 800 people lined up before the stores opened. At a Target in Rockville, customers tried sneaking in behind employees arriving for work about 4:30 a.m.

"There were mobs of people everywhere," said Stephanie Hopkins, a camera saleswoman. "It was crazy."

Even at Toys R Us, chief executive Gerald L. Storch said "anything robotic" was flying off shelves. Among yesterday's most popular items were Nintendo's Wii video game console, the video game Guitar Hero 3 and the Zune music player. The chain began planning yesterday's aggressive events last year, offering 101 featured discounts -- four times more than last holiday season.

"We wanted to make sure our customers understand just how many toys we have," Storch said. "We are the toy authority."

Terry Lundgren, chief executive of Macy's, said the line to get inside the flagship store at Herald Square in New York was so long that he opened the doors half an hour early, at 5:30 a.m. The crowds were lured by the discounts, but sales of luxury goods such as cashmere were also strong, he said.

"It's both of those different categories that are selling," Lundgren said. "I'm encouraged by what's happening so far."

At the store at Metro Center in the District, Andrea Lowery, 35, of Fort Washington tried to fit in some holiday shopping on her lunch break. She bought a pair of black boots marked down to $61 from $89.99, then went to help her friend Sonya Briscoe, 43, of Mount Rainier find a scarf, hats and coats. Both women said they were planning to cut back their spending this year, particularly because of gas prices.

"Everything has gone up," Lowery said.

Price wasn't a consideration for everyone, however. Holly Bodner, 22, traveled with her mother, Joanne, from their home in Norfolk to Tysons Galleria. They stopped at Burberry to buy a long wool coat for Holly and planned to hit Betsey Johnson and Neiman Marcus before the day was over. Holly said she rarely has a chance to visit those stores, so she wasn't worried about bargains.

"We came here to shop," she said. The discounts "are not really a factor."

Sandy Jennings and her son Jack, 6, traveled all the way from the Bahamas to visit relatives in Alexandria and were eager to hit the stores on Black Friday to pick up items they can't get at home. At Toys R Us they found the toy Jack wanted most, a white Tekno robotic puppy for $69.99. Jennings said she planned to limit the family's holiday spending to about $500.

"We are cutting back because of the uncertainty of the economy," she said. "We're buying less presents for each other and trying to be more practical about what we give." The robotic puppy was to be Jack's main present.

"I'm also trying to teach him that Christmas isn't just about getting tons of presents," she said.

"I know that already, Mom," Jack said.

Staff writers Michael S. Rosenwald and Annys Shin contributed to this report.