Shopping crowds swell, but are they buying?

By Kyle Peterson

CHICAGO (Reuters) - Bargain-hunters mobbed retailers at the start of the holiday shopping season, but it remained to be seen whether they were in a buying mood amid a slumping housing market, a credit crunch and rising fuel costs, experts said on Saturday.

Judging by the lines outside Sears stores on "Black Friday," the first official day of the holiday shopping season, consumers were especially eager, said John Ford, regional manager at Sears Holdings in New York.

"It exceeded our expectations. We had more customers at opening yesterday than we had in prior years," Ford said of the number of people waiting outside for the stores to open on Friday. "I would tell you it was 50 to 100 percent higher than it was in previous years," he said.

Ford declined to provide sales figures or to speculate on the shopping season in general. But he was pleased with the large crowds.

Shoppers were on the lookout for giveaways and discounts, but investors were eager for any signs of consumer strength or weakness.

SHOPPING AS SPORT

Most retailers and analysts have expressed cautious outlooks for this holiday season, as consumers retreat in the face of a softening economy.

A drop in weekly mortgage applications, signs of stress in the labor market and crude oil prices flirting with $100 per barrel this week added to a gloomy outlook for retailers.