Retailers in the U.S. may have seen a Black Friday in which both sales and foot traffic increased over the year before. But did they make more profit? It appears not, especially not in the electronics sector.
Several major CE retailers, including Best Buy, RadioShack, hhgregg and Conn's, saw their stock drop Monday morning and remain relatively low throughout the rest of the day. (Circuit City, which is in bankruptcy, had its stock de-listed last month)
According to the Associated Press, the stocks moved downward after multiple reports from analysts that deep discounts on Black Friday items would likely cut into profits. Black Friday got its name from the tradition of retailers moving "into the black" for the year.
Surveys from the National Retail Federation and ShopperTrak both found that Black Friday sales rose this year from 2007 numbers.
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yes sireeeee! its the race to zero!zero profit margins due to the fact that the electronics industry as a whole has become another flailing commodity and the big box stores, manufacterers and the internet are to blame! you reap what you sow oh greedy
ones! did you really think you could survive on 0-10 point profit margins based on sales volumes? what happens when that volume drops 2-5%?
0r even worse 7-20% or more during a deep recesion? harvard
s.o.b (school of buisness) didnt
teach you that? or did you miss
that day?