Black Friday is Bigger Deal for the Have-Nots

At LAT, "Black Friday highlights the contrast between rich and poor":

In Northeast Los Angeles, 1,000 people huddled in the evening chill last Thanksgiving as they waited outside a Target store for the chance to snap up Black Friday deals.

Across town at the Grove, the mostly upscale stores such as Barneys and Nordstrom were closed that night. Holiday shoppers didn't start massing until well into the next morning.

This year's annual ritual of conspicuous consumption promises an even greater contrast.

Discounters and mid-priced chains, eager to gain an edge on competitors for limited gift budgets, have again moved their opening times earlier into Turkey Day, with Kmart leading the pack by launching specials at 6 a.m. Higher-end retailers, however, are keeping their doors firmly shut until Friday.

Increasingly, the seasonal shopping surge has become a window into America's class divide, in which high earners have benefited from a booming stock market and rising home prices as many others still grapple with stagnant incomes and lingering financial anxiety.

Consider these opposite scenarios: In 2013, Bloomingdale's went against the grain by offering fewer Black Friday bargains than the year before, according to the advertising experts at bestblackfriday.com. At a Wal-Mart in Duarte, customers elbowed one another to get their hands on Crayola crayon sets, marked down to $11 from nearly $20. (A trending Twitter hashtag last Thanksgiving was #WalmartFights.)

"You have people who really need a bargain — they will sit out for two days to get that deal because that may be the only big thing they can afford for the whole family," said Britt Beemer, founder of America's Research Group. "Luxury retailers don't do very well on Black Friday because their customers are not going to fight the crowds."

Uncertainty is driving both retailers and customers, especially on the lower end.

The National Retail Federation has forecast that spending will climb 4.1% to $617 billion in November and December, compared with a 3.1% increase the same period last year.

But a separate survey by PricewaterhouseCoopers predicted average household spending for the holidays will fall to $684 from $735 last year.

The slump is driven by those who earn less than $50,000, called "survivalists," whose ranks have been growing. This year, 67% of American shoppers fall into that category, up from 63% two years ago, the report said.

These are the families that retailers will fight over Thanksgiving night — ones with limited budgets who are willing to gobble down their apple pie and hustle to the malls to score enough discounts to check off Christmas lists, said Ken Perkins, president of Retail Metrics Inc.

"Once they have spent their budgets, they are done," Perkins said. "Retailers know if they get them first, they may not have anything left to go to other stores."