Friday, October 31, 2008

Christmas comes even earlier this year

Retailers have long been putting up the holiday decorations right after Halloween, so why not start the sale pricing at the same time? That seems to be Kmart's logic, as they are starting the Black Friday sales this weekend.
The retailer, part of Sears Holdings, said it will offer the deals exclusively in the home-electronics category to help customers kick-start their holiday shopping. The category has become an area of particular concern for retailers, as consumers pull back on discretionary items. Earlier this month, MasterCard Advisors' SpendingPulse service reported that spending on consumer electronics and home appliances dropped 13.8% in September, following a 5.5% drop in August.
It's certainly tough to argue, when you're trying to pare back the family budget, that a new, even bigger HDTV is an absolute necessity, so home electronics is probably a vulnerable area. And it certainly has always been one of the big categories for Black Friday promotion.

Kmart says that they are not putting an increased budget behind these promos, which will run weekly through November (up to the traditional Black Friday, that is).
The deals are being worked into existing circular plans and will not garner additional advertising or promotional spending on the part of the marketer.

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