Bargain Hunting on Bleak Friday
Holiday Shopping in a Downturn: Deals or Nothing at All

By Ylan Q. Mui
Washington Post Staff Writer
Saturday, November 29, 2008

There were no Christmas miracles for retailers yesterday as the holiday shopping season officially got underway.

Pent-up demand could have sent retail sales skyward. Or the economic crisis could have kept them in the red. It was all up to the throngs of shivering shoppers waiting in the dark, cold morning. Would they buy that $598 flat-panel television or a $379.99 Toshiba laptop?

"I would describe the customers as hit-and-run shoppers," said C. Britt Beemer, chairman of America's Research Group, a consumer behavior research firm. "They went in, they got the deal and they left. If the deal was sold out, they left without anything."

The day after Thanksgiving -- commonly called Black Friday -- is a key barometer of holiday spending, when retailers traditionally turn a profit. Retailers managed to rouse many shoppers out of bed through aggressive discounts in key categories such as electronics, toys and apparel, but consumers kept a close eye on their own bottom lines.

Economists are closely watching this holiday season because the depth of the financial slowdown could depend on consumer spending, which accounts for roughly 70 percent of the gross domestic product. The next few weeks are also a make-or-break period for retailers because they count on holiday sales to help pay their costs the rest of the year.

"With the news of the economy, I wasn't certain of what to expect today," said Chris Poleto, general manager of Fair Oaks Mall. He said the 8,000-car parking lot was full by early afternoon and traffic seemed brisk compared with last year. "It seems a little bit more faster and more furious."

Many shoppers were unable to shake off the economic Grinch. Roxanne Draheim, 43, of Rockville said this year's holiday shopping theme was "buy only what you need."

That included three pairs of discounted Easy Spirit shoes at Macy's for her mother and some clothes for her son. She also said she plans to splurge on a new iPod Nano for herself because it was on sale at the Apple store, but otherwise she's determined to "watch cash because we don't know what's going to happen in the economy."

Nia Robinson, 28, a director at an environmental organization in the District, has been a faithful Black Friday shopper for five years and woke up at 4:30 a.m. yesterday to hit Old Navy in Rockville to score the free MP3 player given to the first few customers.

Robinson said she carefully researched deals in the newspaper and online before venturing out because her shopping budget has shrunk to $700 from $900. By midmorning, she was browsing through Montgomery Mall, where crowds resembled those of a typical busy weekend.

"It's a lot calmer than last year even though the sales are better," Robinson said.

Nearly 128 million people are likely to go shopping before the weekend is over, according to the National Retail Federation, a trade group -- fewer than last year but still a substantial number. An official tally won't be available until Sunday.

Macy's reported that nearly 5,000 people, more than last year, waited outside its Herald Square store yesterday morning. Toys R Us chief executive Gerald L. Storch said the New York flagship was packed with shoppers seeking the latest Elmo doll and iPods.

"What we heard from our customers time and time again is that the last thing they're going to cut from their shopping list is a present for their children for Christmas," he said.

Such is the case of Isha Wilkerson, 30, of Shaw, who hit the Toys R Us in Bailey's Crossroads yesterday morning. After putting away gifts from her first round of shopping, including a giant Talking Friendship Adventure Dora that took up half her trunk, she said she was going back inside for a Disney Princess vanity for her daughter, priced down to about $60 from $100.

"I can't leave without it," she said.

Dawn Crawford, 31, of Alexandria, and her girlfriends filled two shopping carts at Wal-Mart in Fair Lakes Center with toys for their children. Noticeably absent were any goodies for themselves. Crawford said she is trying to cut her spending in half this year.

"We pretty much decided we're not giving each other gifts," she said. "We're concentrating on the little ones."

Kelly and Kate Watson of Rockville said their family has decided for the first time to choose Secret Santas among siblings and cousins rather than deluge one another with gifts. Their father was recently laid off, and though he has found another job, the family wanted to keep spending to a minimum this year.

But just because they were buying less for one another didn't mean that they couldn't get a few things for themselves. Kelly, a freshman at the University of Maryland, bought a blazer at Montgomery Mall yesterday and planned to also purchase a North Face winter jacket.

"My parents used to spend a lot for the kids," she said, "but this year it's going to be different."

Sean Feeney, 25, bought home-networking gear at Best Buy in Rockville yesterday and said that his shopping strategy was similar to many consumers: "I'm trying to spend as little money as possible," he said. "I won't buy anything that is not on sale."

For David Zaterka, 45, of North Carolina, Black Friday offered more than just a deal. It was a chance to be a VIP for a day.

Zaterka won a Best Buy contest searching for the biggest Black Friday fan and arrived in a limo at the Best Buy in Columbia Heights while more unfortunate souls huddled under blankets outside. Zaterka and his family were allowed to shop an hour before everyone else and got one-on-one attention from employees as they filled up their shopping cart with video games, memory cards and a new laptop and printer.

Zaterka spends most Thanksgivings with his sister and brother-in-law in Falls Church and has hit Black Friday sales for a decade. He said he appreciated the personal service this morning -- and the $1,000 gift card he won to pay for it all -- but a part of him wished he were outside waiting with the masses.

"I'm gonna miss that," he said. He likes the adrenaline rush of wondering, "Am I gonna get something? Am I not? I always set my expectations low."

But not everybody feels the same way.

For the uninitiated, the long lines, big crowds and early start can make Black Friday seem bleak, no matter what the deals. Roommates and Black Friday novices Jay Buller and Victor Jaramillo, both 27 and of the District, said they had second thoughts yesterday morning when Buller's girlfriend woke them before dawn to head to Best Buy.

"There's always this, 'I'm not sure it's a good idea,' " Jaramillo said.

"There's always that moment," Buller added.

But his girlfriend, Laura Rashedi, 25, of Atlanta prevailed.

"I think it's fun," she said. "It's like the first day that you see people get out and holiday shop."

Staff writers V. Dion Haynes, Cecilia Kang, Michael S. Rosenwald and Annys Shin contributed to this report.