File under: Black Friday and Cyber Monday 2006, News of the Day, Shopping News

According to The National Retail Federation, Black Friday brought both good news and bad news for retailers. While “only” 140 million people shopped in stores or online this past holiday weekend (including Friday), shoppers spent more than last year. The 58.9 million shoppers for Black Friday itself was actually a million less than in 2005. But, the average shopper spent $360.15 this year, representing an 18.9 percent jump from last year.

Electronics seem to be a big mover this year with flat screen TVs (plasmas and LCDs) finally reaching a more acceptable price range. Where once these products were reserved for the few willing to spend several thousand for high quality brands, today’s prices have moderated significantly and low-cost lesser-brand products are flooding stores from Wal-Mart to Best Buy. While supplies for desirable products such as the TMX Elmo and the recently launched Sony Playstation 3 and Nintendo Wii were small, many people went to stores hoping to find one only to walk out with other products.

We wonder whether the increased spending will actually translate to higher profits for retailers. As we previously noted, disappointing sales early in the year (likely driven by economic slowdown and gas prices) pushed many retailers to offer more and deeper discounts in hopes of resurrecting their annual numbers. Low prices may increase sales but smaller margins won’t help the bottom line.

Photo by Flickr user cerealfan