Black Friday Deals

Best Buy could suffer collateral damage from the expected launch tomorrow of Amazon‘s move into the Android-based tablet market, Piper Jaffray analyst Peter Keith asserts in a research note. Keith notes that a proprietary survey of 410 “online participants” suggest “very healthy demand” for an Amazon tablet, which is reportedly called the Kindle Fire, at a $249 price point.

“At this price, we believe this product could create yet another sales headwind for BBY over the coming year as a result of AMZN’s self-distribution model,” Keith writes in a research note. “While BBY may ultimately sell the AMZN tablet, we expect they will under-index in market share.”

In other words, if you buy an Amazon tablet, chances are you are not buying some other tablet via Best Buy.

Keith writes that his survey found that 66% of respondents would be interested in buying an Amazon tablet within 12 months of launch at a $249 price point. Some 62% said they would be more likely to buy the Amazon tablet over than an Apple iPad priced at $599. “We note that this is not a perfect question or comparison given that the details of the AMZN haven’t been released yet and that there is one iPad available for $499 (although the $599 version is the most popular), however we believe that the question shows that there is again significant demand for an AMZN tablet computer,” he adds.

Piper estimates that Amazon could sell 2.5 million tablets through the end of the calendar year.

Keith keeps his Neutral rating and $25 target on Best Buy shares.

BBY yesterday closed at $25.22.

Best Buy may be building fewer big-box stores in malls and shopping centers nationwide. But when it comes to the virtual world, the consumer-electronics giant is looking to grab some digital real estate.

The company recently partnered with San Francisco-based Zynga to allow players to "place" Best Buy stores in the "CityVille" game on Facebook. By making itself a fixture in the popular social game, Best Buy hopes to move beyond traditional advertising and engage consumers in a manner that's equal parts familiar and cutting-edge.

"Our core customers spend a lot of their time on Facebook," said Alix Hart, senior director of digital marketing at Best Buy. "CityVille" "is such a great fit to reach consumers where they are. This is the deepest we've ever gone in social gaming."

Best Buy is trying to get ahead of what industry experts call "gamification," a marketing concept that seeks to effortlessly fuse social media, entertainment and commerce. Although Best Buy generated more than $50 billion in revenue last year, sales from its brick-and-mortar stores has slowed. That's why Best Buy and other retailers want to boost sales by more closely integrating stores with websites and mobile devices.

Retailers could exploit the popularity of "FarmVille," "Mafia Wars" and "Cafe World" — games where users can play and interact with each other on Facebook, Yahoo and Google — and reach gamers with deals, product info and loyalty programs.

In May, HSN (formerly the Home Shopping Network) launched HSN Arcade on its website. Internet retailer Bluefly.com signed up with Badgeville, a Silicon Valley-based gamification startup that recently raised $12 million in venture capital.

Going a little further

Media and tech giants such as Google, Microsoft, Sony and NBC Universal attended the Gamification Summit in New York City.

"It's certainly new," said Dan Shust, who heads innovation for Resource Interactive, a digital-marketing agency based in Columbus, Ohio, which works with retailers. Best Buy's presence on "CityVille" "does go a little further. I can see a whole lot more retailers doing it."

In "CityVille," players build the city of their dreams, including homes, businesses, famous landmarks and public buildings. They can recruit their family and friends to work in police departments and build franchises, such as toy stores. Players can place Best Buy stores in their cities, where they collect items like a smartphone, camera or refrigerator. Collecting these items can win gamers points, energy boosts, game coins and even Geek Squad vehicles that roam the city.

Of course, too much marketing can turn off gamers. But they can naturally associate Best Buy stores with the reality-based world of "CityVille" Shust said.

"There's no reason to see Best Buy in 'Halo,' " said Shust, referring to the popular Xbox video game. In "CityVille," "I wouldn't want a generic big-box store. I want that Best Buy store in my city."

Social games like "CityVille" also offer retailers a wider audience than the hard-core gamers, who tend to be young and male. Fifty percent of the U.S. online population age 18 to 45 plays social games on a daily basis, according to a recent study by Saatchi & Saatchi. Of that group, 46 percent are women.

"Retailers [covet] female shoppers," said Carol Spieckerman, president of Newmarketbuilders, a retail-strategy firm in Bentonville, Ark. "And social gaming is relevant to women."

Appealing aspect

In addition, 66 percent of social gamers own a tablet and 53 percent are smartphone users.

That's especially appealing to Best Buy, which has been aggressively courting consumers on their mobile devices.

Will building Best Buys in "CityVille" lead to real-world sales?

"I don't know," Hart of Best Buy said. "Our first priority is to build brand consideration" among players.

Between Aug. 31 and Sept. 6 — the week Best Buy appeared on "CityVille" — the retailer gained more than 1 million fans on Facebook.

"This was unprecedented for us," spokeswoman Erin Bix wrote in an email. "We are still assessing other metrics, like traffic to our website and engagement with the game. But we are thrilled with the results we have so far and the positive feedback we've heard from our fans on Facebook."

Best Buy will return to "CityVille" for a week beginning Nov. 6, just in time for the holiday-shopping season.

Best Buy and Zynga officials say they are open to introducing more real-world transactions into the game. For instance, Spieckerman of Newmarketbuilders said consumers could one day buy real merchandise in "CityVille" Best Buy stores that they can't find in the actual stores.

"I don't see them not doing it," Spieckerman said.

Best Buy may be building fewer big-box stores in malls and shopping centers nationwide. But when it comes to the virtual world, the consumer-electronics giant is looking to grab some digital real estate.

The company recently partnered with San Francisco-based Zynga to allow players to "place" Best Buy stores in the "CityVille" game on Facebook. By making itself a fixture in the popular social game, Best Buy hopes to move beyond traditional advertising and engage consumers in a manner that's equal parts familiar and cutting-edge.

"Our core customers spend a lot of their time on Facebook," said Alix Hart, senior director of digital marketing at Best Buy. "CityVille" "is such a great fit to reach consumers where they are. This is the deepest we've ever gone in social gaming."

Best Buy is trying to get ahead of what industry experts call "gamification," a marketing concept that seeks to effortlessly fuse social media, entertainment and commerce. Although Best Buy generated more than $50 billion in revenue last year, sales from its brick-and-mortar stores has slowed. That's why Best Buy and other retailers want to boost sales by more closely integrating stores with websites and mobile devices.

Retailers could exploit the popularity of "FarmVille," "Mafia Wars" and "Cafe World" — games where users can play and interact with each other on Facebook, Yahoo and Google — and reach gamers with deals, product info and loyalty programs.

In May, HSN (formerly the Home Shopping Network) launched HSN Arcade on its website. Internet retailer Bluefly.com signed up with Badgeville, a Silicon Valley-based gamification startup that recently raised $12 million in venture capital.

Going a little further

Media and tech giants such as Google, Microsoft, Sony and NBC Universal attended the Gamification Summit in New York City.

"It's certainly new," said Dan Shust, who heads innovation for Resource Interactive, a digital-marketing agency based in Columbus, Ohio, which works with retailers. Best Buy's presence on "CityVille" "does go a little further. I can see a whole lot more retailers doing it."

In "CityVille," players build the city of their dreams, including homes, businesses, famous landmarks and public buildings. They can recruit their family and friends to work in police departments and build franchises, such as toy stores. Players can place Best Buy stores in their cities, where they collect items like a smartphone, camera or refrigerator. Collecting these items can win gamers points, energy boosts, game coins and even Geek Squad vehicles that roam the city.

Of course, too much marketing can turn off gamers. But they can naturally associate Best Buy stores with the reality-based world of "CityVille" Shust said.

"There's no reason to see Best Buy in 'Halo,' " said Shust, referring to the popular Xbox video game. In "CityVille," "I wouldn't want a generic big-box store. I want that Best Buy store in my city."

Social games like "CityVille" also offer retailers a wider audience than the hard-core gamers, who tend to be young and male. Fifty percent of the U.S. online population age 18 to 45 plays social games on a daily basis, according to a recent study by Saatchi & Saatchi. Of that group, 46 percent are women.

"Retailers [covet] female shoppers," said Carol Spieckerman, president of Newmarketbuilders, a retail-strategy firm in Bentonville, Ark. "And social gaming is relevant to women."

Appealing aspect

In addition, 66 percent of social gamers own a tablet and 53 percent are smartphone users.

That's especially appealing to Best Buy, which has been aggressively courting consumers on their mobile devices.

Will building Best Buys in "CityVille" lead to real-world sales?

"I don't know," Hart of Best Buy said. "Our first priority is to build brand consideration" among players.

Between Aug. 31 and Sept. 6 — the week Best Buy appeared on "CityVille" — the retailer gained more than 1 million fans on Facebook.

"This was unprecedented for us," spokeswoman Erin Bix wrote in an email. "We are still assessing other metrics, like traffic to our website and engagement with the game. But we are thrilled with the results we have so far and the positive feedback we've heard from our fans on Facebook."

Best Buy will return to "CityVille" for a week beginning Nov. 6, just in time for the holiday-shopping season.

Best Buy and Zynga officials say they are open to introducing more real-world transactions into the game. For instance, Spieckerman of Newmarketbuilders said consumers could one day buy real merchandise in "CityVille" Best Buy stores that they can't find in the actual stores.

"I don't see them not doing it," Spieckerman said.

HUNTSVILLE, Ala., Sep 21, 2011 (BUSINESS WIRE) -- With only 65 days left until Black Friday, dealnews.com, the premier year-round resource for the best deals on consumer electronics, gadgets, computers, apparel, and more, today released its 2011 Black Friday Predictions report, which is intended to help consumers get the deal of a lifetime by shopping online this holiday season. High-end products such as tablets, HDTVs, laptops, eBook readers and select Apple products can be purchased for less than $250, while many more desirable items, such as Blu-ray players, tech accessories and apparel are expected to be priced up to 50 percent off.

"This year's holiday shopping season is a buyers' market, as technology innovation and growing competition among product manufacturers and retailers alike will drive Black Friday prices down to historic lows," said Daniel de Grandpre, editor in chief, dealnews.

These findings and more are part of dealnews' annual Black Friday Predictions report, an invaluable resource that outlines anticipated deals for a wide variety of the season's hottest consumer electronics and more. To date, the report has successfully projected the price for eight out of every 10 predictions made for many of the holiday's most popular product categories. Some of the findings from this year's report include the following:

Apple Products

-- For the fourth consecutive year, Apple's rumored Black Friday sale will generate significant media hype, but will disappoint shoppers with actual discounts reaching only five to 10 percent off.

-- Consumers wanting to purchase iPads, MacBooks and iPhones should avoid Apple stores, both physical and online. Instead, shopping online through authorized resellers like Amazon, MacConnection and MacMall will offer discounts that are up to two times better.

Tablets

-- Consumers can expect to see all-time low prices on popular tablet brands, even new models.

-- Tablets such as the Motorola XOOM and the 7" Samsung Galaxy Tab are predicted to cost $319 and $239, respectively. What's more, generic Android tablets are likely to fall to $75 this holiday season.

HDTVs

-- Retailers are predicted to slash prices for various sizes of 1080p LCD HDTVs, some as much as 50 percent off compared to sales offered during Black Friday 2010.

-- Shoppers in search of smaller HDTVs to furnish bedrooms, game rooms or dens will be in luck--prices for 32" 1080p LCD models are expected to fall to $199. Those looking for larger displays can also save hundreds of dollars, as 60" 1080p LCD sets may drop to just $699.

eBook Readers

-- This holiday season, eBook readers will be discounted more heavily than in years past. Shoppers will be able to take advantage of bundle deals offered by retailers, such as $25 book credits.

-- The Kindle 3 WiFi Reader is expected to drop to just $99 on Black Friday, while the NOOK Color Reader will be offered for as low as $179.

Laptops

-- While laptops may appear to be overshadowed by the high market demand for tablets, they remain one of the most popular gifts and will be offered at historically low prices this holiday season.

-- 16" dual-core processor systems, with basic features and functionality for the average consumer, will be on sale for just $189.

"Instead of battling long lines, rowdy crowds and sleep deprivation to get in-store deals, we're encouraging consumers to start new Black Friday traditions," de Grandpre continued. "Shopping online from home will result in discounts that match, if not exceed, in-store reductions, plus the ability to compare prices before buying. Our Black Friday Predictions essentially puts the retailers' playbook in shoppers hands, giving them the foresight needed to determine what and when to buy online to stretch their shopping budgets."

The dealnews 2011 Black Friday Predictions report also includes buying advice, shopping tips and other projected deals on Blu-ray players, gaming consoles, external hard drives, solid state drives (SSDs), apparel, and other must-have items to help consumers save money.

Methodology

For its Black Friday predictions, dealnews uses up to three years of historical data based on deals listed on dealnews.com. Using that data, dealnews extrapolates expected sales for Black Friday by applying current trends to historical Black Friday price drops. In so doing, the company corrects for anomalies such as outliers, floor effects, and disruptive new technologies that influence pricing trends.

SOURCE: dealnews.com, Inc

Read More >> Black Friday Deals, Black Friday Ads

HUNTSVILLE, Ala., Sep 21, 2011 (BUSINESS WIRE) -- With only 65 days left until Black Friday, dealnews.com, the premier year-round resource for the best deals on consumer electronics, gadgets, computers, apparel, and more, today released its 2011 Black Friday Predictions report, which is intended to help consumers get the deal of a lifetime by shopping online this holiday season. High-end products such as tablets, HDTVs, laptops, eBook readers and select Apple products can be purchased for less than $250, while many more desirable items, such as Blu-ray players, tech accessories and apparel are expected to be priced up to 50 percent off.

"This year's holiday shopping season is a buyers' market, as technology innovation and growing competition among product manufacturers and retailers alike will drive Black Friday prices down to historic lows," said Daniel de Grandpre, editor in chief, dealnews.

These findings and more are part of dealnews' annual Black Friday Predictions report, an invaluable resource that outlines anticipated deals for a wide variety of the season's hottest consumer electronics and more. To date, the report has successfully projected the price for eight out of every 10 predictions made for many of the holiday's most popular product categories. Some of the findings from this year's report include the following:

Apple Products

-- For the fourth consecutive year, Apple's rumored Black Friday sale will generate significant media hype, but will disappoint shoppers with actual discounts reaching only five to 10 percent off.

-- Consumers wanting to purchase iPads, MacBooks and iPhones should avoid Apple stores, both physical and online. Instead, shopping online through authorized resellers like Amazon, MacConnection and MacMall will offer discounts that are up to two times better.

Tablets

-- Consumers can expect to see all-time low prices on popular tablet brands, even new models.

-- Tablets such as the Motorola XOOM and the 7" Samsung Galaxy Tab are predicted to cost $319 and $239, respectively. What's more, generic Android tablets are likely to fall to $75 this holiday season.

HDTVs

-- Retailers are predicted to slash prices for various sizes of 1080p LCD HDTVs, some as much as 50 percent off compared to sales offered during Black Friday 2010.

-- Shoppers in search of smaller HDTVs to furnish bedrooms, game rooms or dens will be in luck--prices for 32" 1080p LCD models are expected to fall to $199. Those looking for larger displays can also save hundreds of dollars, as 60" 1080p LCD sets may drop to just $699.

eBook Readers

-- This holiday season, eBook readers will be discounted more heavily than in years past. Shoppers will be able to take advantage of bundle deals offered by retailers, such as $25 book credits.

-- The Kindle 3 WiFi Reader is expected to drop to just $99 on Black Friday, while the NOOK Color Reader will be offered for as low as $179.

Laptops

-- While laptops may appear to be overshadowed by the high market demand for tablets, they remain one of the most popular gifts and will be offered at historically low prices this holiday season.

-- 16" dual-core processor systems, with basic features and functionality for the average consumer, will be on sale for just $189.

"Instead of battling long lines, rowdy crowds and sleep deprivation to get in-store deals, we're encouraging consumers to start new Black Friday traditions," de Grandpre continued. "Shopping online from home will result in discounts that match, if not exceed, in-store reductions, plus the ability to compare prices before buying. Our Black Friday Predictions essentially puts the retailers' playbook in shoppers hands, giving them the foresight needed to determine what and when to buy online to stretch their shopping budgets."

The dealnews 2011 Black Friday Predictions report also includes buying advice, shopping tips and other projected deals on Blu-ray players, gaming consoles, external hard drives, solid state drives (SSDs), apparel, and other must-have items to help consumers save money.

Methodology

For its Black Friday predictions, dealnews uses up to three years of historical data based on deals listed on dealnews.com. Using that data, dealnews extrapolates expected sales for Black Friday by applying current trends to historical Black Friday price drops. In so doing, the company corrects for anomalies such as outliers, floor effects, and disruptive new technologies that influence pricing trends.

SOURCE: dealnews.com, Inc

Read More >> Black Friday Deals, Black Friday Ads

So what's on sale this year?

Look for sales on televisions, DVD and Blu-ray players, and GPS systems. And inexpensive kitchen appliances, including $3 toasters at Target.

Many stores are offering additional discount coupons and gift cards with purchase.

And several are opening earlier this year. Sears will be ready for shoppers at 4 a.m. And Target is starting its sale at 5 a.m.

Here are some especially promising doorbusters. Remember, quantities will be limited:

Dick's Sporting Goods

So what's on sale this year?

Look for sales on televisions, DVD and Blu-ray players, and GPS systems. And inexpensive kitchen appliances, including $3 toasters at Target.

Many stores are offering additional discount coupons and gift cards with purchase.

And several are opening earlier this year. Sears will be ready for shoppers at 4 a.m. And Target is starting its sale at 5 a.m.

Here are some especially promising doorbusters. Remember, quantities will be limited:

Dick's Sporting Goods