Stores Slash Prices After Humbug Holiday

Analyst: Desperate Retailers Drop Prices Even More Than Before Christmas, And Trying Other Tactics

(CBS)  Retailers slashed prices every which way to entice shoppers before Christmas, to little avail.

Preliminary numbers are down sharply from last year.

So, how low will retailers go in an attempt to salvage something from this holiday shoppng season, now that Christmas has come and gone?

"It's hard, mathematically, to see (prices) go lower," retail analyst Marshal Cohen of the NDP Group told substitue co-anchor Tracy Smith on The Early Show Friday, "but really, what’s going to happen is retailers are going to start bundling. (That) means, buy one, get two free. They’re gonna basically get to a point where -- buy one, take as many as you want home!

"We're getting close to that. But really, what’s going to happen is, from today on, the retailers are just gonna continue to up the ante. They want to be out of this merchandise before the middle of January so they can get ready for, hopefully, a whole new season."

Crowds, Marshal pointed out, "really haven't been down all that much. It's the shopping, the purchasing that's really down. Consumers are going out. The sport of shopping is still a big family pastime endeavor, but consumers are just basically saying, 'Unless there’s a really great reason for me to buy it and right now, I won't.'

"Price has been the only lure that the retailer has been able to use, and the consumer is saying, 'Well, you know, convince me otherwise. I'm thinking twice before I make any purchases.'

So really, what’s happening is the crowds will be there, but this is one of those rare times. These may be the best deals you're gonna find in a decade. This is something that didn't normally happen, when the retailer got caught really with more merchandise than they expected, and prices are really the only way they're gonna be able to get the consumer to spend."

As a result, "Now is the time" to hit stores, Cohen agreed with Smith.

Apparel has been particularly hard hit, he noted, saying, "Clothing really had a tough season starting back in fall, back in August, September and October, the apparel business just fell out of the bottom. There’s nothing new and exciting. You can wear a short skirt or a long shirt. You can wear black with another black outfit, and people are just compiling, so wardrobing has really been going on for awhile. The apparel industry is probably the least most fashionable of all businesses. Electronics are more colorful than apparel is."

Speaking of which -- that sector has also been suffering, with a couple of exceptions.

"When you look at what’s new and exciting (in electronics) this year," Cohen said, "it’s the same as last year, meaning, there’s nothing new and exciting. What happened is, Apple really did a good job of keeping their product in the forefront, keeping it exciting, keeping it top-of-mind, and they even came out with nine new colors of some of the products that they had last year, so they got people excited. There were people, consumers out there telling me they were buying a new iPod for themselves in their favorite color and gifting their other one that they had from before!"

Another bright spot -- "video game businesses; Wii Fit is a great example of updating the hot item from last year with new and exciting product. Good luck finding the Wii Fit the last two months of the holiday season, and now we have to wait for them to come back in. Some of the kids are actually saying, 'I'd rather go without getting anything this Christmas, even if it means waiting for he one thing I want." '

[puzzler125]

I''ve noticed many "buy two, get 50% off" the SECOND item which is actually 25% off each item. The lure of the "50%" attracts customers but you need to do the math very carefully.

[debinok1]

I did find a shirt for my son for 2.50 and a fleece blanket for the living room for 3.00 thats about all the business they will get from me for a few days until I see deeper cuts in prices. Will wait and see.

[ace_face1]

So sorry. Maybe we figured out we don''t need 10 TVs and 19 tons of plastic garbage.

[mcv57]

..... perhaps they should sale the government to China, heaven knows the politicians has already sold-out this nation already.

[mcv57]

Its a regional demographic sale. A rich community will not see deep discounts, while the poor states will be hosting Going-of-Business sales.

[hotwitch]

"and they (Apple) even came out with nine new colors of some of the products that they had last year, so they got people excited."

What do these fool retailers expect?, that the economy is going to be pulled out of a recession by the American consumer stocking up on Christmas electronic junk?

[renonv5]

I still havent seen anything "deeply" discounted, 5 to 10% is about it, not enough for me to use a pry bar on my pocket book. Posted by DebinOK1

They are all in denial. They can''t believe we are unto them and aren''t playing the game anymore. These stores will continue to stock their shelves with *** made in sweatshops, sporting a 400% mark-up and expect you and I to swallow it whole!

[talkingham]

It''s such a wonderful economic model it should go on forever right?- a religous holiday borrowed from pagan soltice ceremonies, aimed at selling or bilking as many people to to go into debt as much as possible each year to pay for slop made in China.

instead of blaming consumer for coming to their senses and not spending so much for slop we should start wondering just what is a free market economy in a cartel controlled world.

happy holidays!

[debinok1]

I still havent seen anything "deeply" discounted, 5 to 10% is about it, not enough for me to use a pry bar on my pocket book.

[unlresources]

It''s finally coming to light the amount of mark-up there are on items being sold. MSRP is something that needs to be gotten rid of. Retail price is such a joke when the mark-up can be as high as 400%. Like an earlier poster mentioned most stuff on sale is junk that you don''t need anyway. Save your money for a rainy day that''s just around the corner.

[skeezix06]

Oddly enough, I haven''t seen price cuts as deep as you allege around here even though after looking at your show I made a point to look for them.

Regardless, people who don''t have money simply can''t afford to buy. The goose (middle class) that laid the golden eggs has been killed and consumed by CEO greed. That''s a fact.

[hetup-2009]

Going to be a lot more sales before they see a dime from me. I don''t need any of that junk. While you''re at it stuff your foreign oil too. Fornicators of rats

[debinok1]

If the consumer doesn''''t buy, they don''''t make money! The greed is taking its toll on these thieves! They are not in control; the consumer is! Lets make them pay! Lets take control! Without us, they can''''t survive! Lets control them for a change!!!

Posted by brannigon
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They havent learned their lesson yet, they still think we are stupid and will buy into their "sale" mentality. Prices are still way to high, even on "sale", let them sweat it out, bring the prices in line with average wages, then we will see if we want to buy again.

[brannigon]

Well, its like the old saying goes; "Don''t bite the hand that feeds you!" If the consumer doesn''t buy, they don''t make money! The greed is taking its toll on these thieves! They are not in control; the consumer is! Lets make them pay! Lets take control! Without us, they can''t survive! Lets control them for a change!!!

[slinginrich]

Dullards out scarfing up more useless Chinese Junk instead getting ready for the coming War of the Criminal Government against the American people.....
After all, that Flat Screen will come in so handy when deflecting those bullets coming through the walls.....

[tmittelstaed]

Same old bait& switch, same old. Best Buy was advertising a Toshiba 19 inch HDTV for $249, for the features on it, that was a great deal. But here''s the catch, the day the ad ran, they were only available at 1 store in the city out of 6 stores (I saw that on their website) and when I went to that store, there were only 4 in stock. This is a city of a half-million people. I was just lucky that it had been snowing and most people stayed off the roads. By the way, it is a great TV, really nice picture.

[spaspy]

SOCKPUPPET4, THERE ARE PLENTY OF DEMS IN OUR GOVERNMENT THAT VOTED THE SAME AS THE REPUBLICANS! YOU HAVE TO BLAME ALL OF THE GOVERNMENT FOR WHAT HAS HAPPENED IN OUR COUNTRY AND ITS PEOPLE FOR VOTING THEM INTO OFFICE. WE NEED TO GET ALL OF THE PRESENT OFFICE HOLDERS OUT AND PUT IN FRESH NON-CAREER POLITICIANS IN THERE TO HAVE ANY REAL CHANGE. OTHERWISE ITS JUST THE SAME OLD SH*T AS USUAL. END OF STORY.

[McHineguy]

Which is why we should ban agricultural monopolies like ADM and Mansanto.


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Posted by whitemale08 at 04:29 PM : Dec 26, 2008

I think we should ban all monopolies and conspiracies in every form. That includes business monopolies that crowd out competition, price fixing conspiracies that prevent price competition, and unions that are in reality just conspiracies to set prices for labor. I also think political parties are a form of conspiracy to prevent moderation on either side.

[McHineguy]

Umm, sorry that wasn''''t socialism. That was something called "FEUDALISM"......the serfs did NOT actually OWN land......they made agreements (retainers) with a lord to get tracts of land in return for some form of payment. Your perspective of socialism is a wee-bit skewed.




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Posted by arlt1627 at 04:16 PM : Dec 26, 2008

I am fully aware of the difference in name. But I am also fully aware of the similarity in practice. Under feudalism the serfs contracted with the lord of the manor. The Lord of the manor had near absolute power over the serfs. He controlled what they farmed, had to eat, and what they got paid. He even controlled the meager health care they got. Under socialism we contract with the government in power. The government controls what we can earn, what businesses are viable, and how we are taxed. Now they even want to control our health care. The only difference is we no longer call them lords, we call them congressmen. But, they are rich and powerful just the same with names like Kennedy, Clinton, Pelosi, Kerry (Heinz), etc. Soon, even Ford and GM will be fariming their fields.

[renonv5]

I think the press is doing a lot of mind manipulation here.
Posted by RowdynTex

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That providing you even have a mind.