Friday, November 26, 2010

Black Friday

Black Friday dawns this year with much more optimism than last year's. This traditional kickoff to the Christmas shopping season - when retailers hope to turn the year's accounts into the black - was a bit of a downer last year, when sales rose just 0.5 percent from the previous Black Friday, when consumers spent $18.6 billion. This year, the forecast from MasterCard Advisors Spending Pulse calls for an increase of 3.5 percent.

One factor that may complicate that growth: People are increasingly saying they will keep their credit cards in their wallets. Only 8 percent of shoppers say they will use more plastic this year, while 35 percent say they will use more cash. Overall, 90 percent of shoppers say they'll pay for their purchases with cash.

That could cut seriously into their spending habits. According to a study from the American Research Group, the average shopper using a credit card spends $87 per purchase; those using cash, check or debit cards spends just $41.

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