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Posted on Fri, Nov 27, 2009 : 7:19 a.m.

Shoppers pack U.S. stores as holiday season revs up

By AnnArbor.com Staff

Shoppers crowded stores and malls in the wee hours Friday, some after spending the night waiting in line, to grab early morning deals and hard-to-find items.

The nation's retailers plied consumers with expanded hours and deep discounts on everything from toys to TVs in hopes of getting consumers worried about high unemployment and tight credit to open their wallets.

A number of stores, including Walmart and many Old Navy locations, opened on Thanksgiving, hoping to make the most of the extra hours. Toys R Us opened most of its stores just after midnight Friday.

At the Walmart store in Valley Stream, N.Y., where a security guard was trampled to death in a Black Friday stampede last year, heavy turnout filled the store to capacity, leading to a snaking line hundreds of people deep around 4 a.m. The store was letting shoppers a few at a time as other shoppers left amid a heavy security presence.

The store's sales brought many shoppers out for the first time, among them Sheirra Henderson of Queens, N.Y. She was there for $7 Nintendo Wii games and a netbook as gifts for her kids.

"We're in a recession, so I figured we'd be able to save more money," she said.

Most of the Walmart stores were open on Thanksgiving to prevent the mad dash for the 5 a.m. opening.

At the Toys R Us store in Manhattan's Times Square, people lined up 200 deep in anticipation of the midnight opening — five hours earlier than a year ago. Some were tourists who had jumped in line after watching the Macy's Thanksgiving Day Parade; others were New Yorkers wanting to get a good deal on game systems or get their hands on this year's toy craze, Zhu Zhu Pets robotic hamsters.

Juan Almanzor, 30, and Maria Lopez, 30, were in line at 7 p.m. Thursday.

"Why come late?" Juan Almanzor said. He said they were here for "whatever you can get," including the Zhu Zhu Pets for their children.

"It's cute, its cuddleable. It's just like the real one," he said.

In suburban Cincinnati, shoppers began streaming into a Wal-Mart Supercenter around midnight to get tickets for big items like sale-priced televisions and computers.

By 4 a.m. shoppers were packed in the store, lining shrink-wrapped merchandise that was not to be unveiled until 5 a.m.., including toys. Most of the deals were to end at 11 a.m.

"The economy has affected my shopping. I wanted to get out and get the good prices," said Patricia Foy, of Cincinnati who had been at the store since 11:30 p.m Thursday with her three daughters and four granddaughters.

"I'm mostly shopping for my kids and grandkids, but I also decided to treat myself this year, because I'm one of the lucky ones. I've still got a job."

After suffering the worst sales decline in several decades last holiday season, the good news is that the retail industry is heading into the Christmas selling period armed with lean inventories and more practical goods on their shelves that reflect shoppers' new psyche.

Still, with unemployment at 10.2 percent, many analysts expect that total holiday sales will be at best about even from a year ago.

Optimism rose in early fall as shoppers spent a little more, but stores say they've seen a sales slowdown since Halloween, putting merchants more on edge.

The promotional blitz typical for the traditional start of the holiday shopping season has high stakes for retailers who've suffered through a year of sales declines. It's also important for the broader economy, which could use a kickstart from consumer spending.

Black Friday gets its name because it traditionally was the day when huge crowds would push stores into "the black," or profitability. But the weekend doesn't provide a forecast for the rest of the season, which accounts for as much as 40 percent of annual sales and profits for many stores.

Still, retailers closely study buying patterns for the Thanksgiving weekend to gauge shoppers' mindset — what kinds of items they're buying, what deals are luring them.

Stores need to perform well for the traditional start because chances are slim they'll be able to make up for lost sales for the rest of the season.