Black Friday high on volume, short on profits

Sales on Black Friday — the day after Thanksgiving, thought to be the busiest shopping day of the year — fared better than anticipated but did not rescue November retail sales, according to a report from Thomson Reuters of New York.. In fact, November same-store retail sales may be the worst recorded due to drastic price cuts: The success of Black Friday sales probably came at the expense of margins as stores cut prices, the report said. Analysts are expecting a 2.5% drop in November same-store sales, according to Thomson Reuters. That expected decline jumps to 7.1% with Wal-Mart Stores Inc., factored out of the equation. Consumers have experienced high prices for food and other essentials in addition to a fall in home values this month. As a result, people have cut spending, and the later timing of Thanksgiving this year hurt chances for a sales recovery. Declines are expected from most retailers, according to Thomson Reuters data. Wal-Mart of Bentonville, Ark. is expected to report a 2% increase, while its rival Target Corp. of Minneapolis is expected to see a 9.1% loss in same-store sales.