How Black was Black Friday?

Last year, U.S. consumers spent $10.3 billion on the Friday after Thanksgiving – “black Friday” because it represents the first time in the calendar year that retailers are profitable (“in the black”) – and, according to a November 29, 2008 estimate (reported by the Associated Press) from ShopperTrak RCT Corp., a Chicago-based research firm that tracks sales at more than 50,000 retail outlets this year, we increased to $10.6 billion on Friday, November 28th!

Great news, right? Well, it’s better than a sharp stick in the eye (which “less” would have meant), but given the steep holiday discounting that lured shoppers in this year, no one is holding their breath for increased profits. Surveys still show that holiday shoppers are scaling back and looking for bargains, but the one day tally suggests that there is at least a glimmer of a retail season left this year, which places just 27 days between Thanksgiving and Christmas (last year had 32 days).

Nonetheless, the consumer market reflected a “willingness to spend” that is a clear, positive marker, especially as the stock market rose and settled for a relatively longer five day stretch. We still have financial crises to see bottom out – the impact of hedge fund capital withdrawals, the confidence-killing of rising unemployment, private equity firms holding damaged and over-borrowed companies that need to be restructured, an illiquid housing market that seems far from bottom, and credit card debt that dangles as dangerous levels – but any positive sign shows that a bottom can be reached, that given a little push, consumers can be given enough confidence to buy, has to be good news.

With new leadership, bipartisanship possible in our nation’s capital, maybe our government can lead us back to the country we all know we can be. We can expect a few more downturns before we stabilize, but the numbers show that everyone is ready to participate in the “big restart.”

I’m Peter Dekom, and this one is short and sweet.