Shoppers go Black Friday deal hunting

By Martinne Geller

NEW YORK (Reuters) - Eager shoppers stormed malls and stores across the country on Friday to snap up the early-bird specials that mark "Black Friday," the first official day of the U.S. holiday shopping season.

While shoppers were looking for giveaways and discounts, investors were watching for signs of consumer strength or weakness.

Most retailers and analysts have expressed cautious outlooks for this holiday season, as consumers pull back amid a slumping U.S. housing market, a credit crunch, and rising food and fuel costs.

"Retailers knew they had to offer promotions enticing enough to get shoppers out of bed on a chilly day -- and they delivered," said Tracy Mullin, chief executive of the National Retail Federation, a trade group said on Friday. "Though retailers are anticipating a challenging holiday season, they are encouraged by the enthusiasm that their Black Friday sales generated."

NRF in September forecast holiday retail sales during November and December would rise 4 percent, the slowest rate since 2002, when sales rose 1.3 percent, and below the 10-year holiday sales average of a 4.8 percent increase.

Macy's Inc Chief Executive Terry Lundgren told Reuters that the line surrounding its flagship Herald Square store in midtown Manhattan was so long he decided to open the doors at 5:30 a.m. EST, 30 minutes earlier than planned. About 3,000 customers then rushed inside, he said, up from last year, when 2,500 shoppers entered at 6:00 a.m.

Customers came for the promotions, such as a $250 Martha Stewart Christmas tree on sale for $99.99 but stayed to buy full-price items such as Coach boots, Michael Kors handbags and Donald Trump ties, Lundgren said, fueling his optimism about the upcoming weeks.

"If you do well on Black Friday, it's a good indication that you've got the right items and the right marketing to attract the customer for the rest of the season," he said.

IT'S THE DISCOUNTS

Many other retailers such as Wal-Mart Stores Inc, Best Buy Co Inc, J.C. Penney Co Inc and Kohl's Corp used so-called "doorbuster" deals and extended hours to lure Black Friday crowds.

Even Apple Inc, which doesn't usually mark down its goods, jumped in, offering up to $101 off MacBook and iMac computers, and up to $31 off classic iPods.

With the bargains came the crowds.

Craig Johnson, president of consumer and retail consulting firm Customer Growth Partners, said that in Connecticut there were about 700 people lined up at a Best Buy store at 4:45 a.m., 420 people at a Circuit City, and 540 at a Wal-Mart.

At that Wal-Mart, in Norwalk, Johnson said there were 21 registers open with at least 10 people waiting at each, plus four registers in the electronics area, each with at least 20 people. The parking lot was past full and spilled into neighboring lots, he added.

At a Best Buy in Geneva, Illinois, west of Chicago, Adam Wishne, a 19-year-old student from Geneva, headed a line of about 150 people, having pitched a tent at 10 a.m. CST on Thursday.