They call it Black Friday for a reason, because generally retailers are “in the black” for the year by the time it rolls around and all the shopping for the day has been completed. With the advent of the internet and online sales, the traditional Black Friday sales and advertising now start well in advance of the actual day, which has actually cannibalized sales from the day after Thanksgiving.
In a new report from the analysts at Jefferies they have done an in-depth look at the discounting that retailers will be offering this year. As usual, the savings for shoppers will be significant. Jefferies’ analysts noted that all price ranges show greater discounts this year, but better discounts will be on lower price points, which resembles the last two years. They also pointed out a similarity of last year’s theme where nearly two-thirds of the 4,000+ priced items captured were in the sub $50 price range.
So which companies are offering their customers the biggest percentage discounts? The Jefferies research points to four that should come in on top. The analysts average discount in all price points from less than $50 to over $1000 to come up with the 2015 average discount figures.
The venerable retailer has struggled mightily over the last few years, but will reward shoppers with the highest over percentage savings this year. J.C. Penney Company, Inc. (NYSE: JCP) is on the leaderboard as far as discounts for their customers. The Jefferies team believes that the company will offer 2015 average discounts of 64%.
Despite the struggles over the last five years, which included the dreadful hiring of Ron Johnson from Apple as CEO, the company remains one of the nation’s largest apparel and home furnishing retailers. Across approximately 1,020 stores and at jcpenney.com, customers will discover a broad assortment of national, private and exclusive brands to fit all shapes, sizes, occasions and budgets.
J.C. Penney has not been all good news but has not been all bad news either. It was recently seen that 44,000 were protesting their Thanksgiving hours, and it was seen that discounts of 68% may also be seen. There was also a mixed reaction to the most recent earnings.
The Thomson/First Call consensus price target for the stock is posted at $9.86. The shares closed the day on Tuesday at $8.30.