Retailers Struggle To Boost Sales

But Will Slashing Prices Push Shoppers To Open Wallets?

(CBS)  If you hit the malls this weekend you saw that desperate retailers were slashing prices in an effort to move inventory and push shoppers to open their wallets ... but will it be enough to turn business around?

Shoppers were taking advantage of deep discounts as stores cut prices up to 75 percent in some places, reports CBS News correspondent Bianca Solorzano.

But there were no Christmas miracles this weekend for the struggling retail industry.

"There really wasn't anything that could have turned the season around here in the last couple or three days," said Frederick Crawford, CEO of AlixPartners, a global business advisory firm.

With a shaky economy, many consumers were forced to cut back.

Retail sales through Christmas Eve came in worse than expected -- down as much as 8 percent compared to last year, according to SpendingPulse.

And there was more bad news for retailers. Many shoppers were at the mall to bring back their presents. America's Research Group predicts that the number of people returning and exchanging gifts will be up 40 percent over last year.

"For those consumers that need the cash over the gift, they'll return it and keep the cash," Crawford said. "And unfortunately in many households that's, that's an important consideration for them this year because cash is so tight."

Official holiday sales numbers will be out next week. In the meantime, shoppers can expect the discounts to continue into 2009 -- until new merchandise comes to stores in February.

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Early Show Saturday co-anchor Chris Wragge spoke to Dana Telsey, CEO and chief retail analyst at the Telsey Advisory Group, about the difficulties retailers are facing as the year draws to a close. To view, click the Play button below.

[whitemale08]

Now that ''globalization'' has collapsed you will see very soon in urban areas what you already see in rural towns in America.

And that is empty shopping malls that are closed down, with big empty parking lots and weeds growing up through the concrete.

Kids will ride bicycles and pop wheelies in empty car garages while northcom deploys military police to keep a curfiew on what is already starting to look like that movie Mad Max or Children of Men.

[wl7bzh]

Remember all the apocalypse movies where the main character is walking through the ruins with his or her dog and having flashbacks to a time before the final disaster?

Look around folks-this ain''t a movie-it''s real.

Where the heck is Will Smith when ya need him?

[samthetvcat]

Maybe this''ll help better drive the point home - once again GDP is comprised of 5 elements, not 3. If you are unwilling or incapable of addressing the extra two, which is the trade imbalance, that only leaves the other 3 elements with which to grow the economy.

Now, what we have in fact found out over the last 8 years is that in fact wages ARE NOT sufficiently high to counter the trade imbalance without taking on debt.

If you DO NOT address the trade imbalance, and consumers and businesses do not take on the debt, then governments will have to shoulder that burden into PERPETUITY.

I think people get lost in their idea of themselves as being good-intentioned and therefore more likely to succeed where Bush failed (?) Because it''s nearly impossible to get anybody to want to address this point, and even if they do they just refuse to believe anything other than that magic will happen and wages will go up (?)

I mean like is that what people are thinking? I''m not sure good intentions are good enough . . .

[mytoosense]

But Will Slashing Prices Push Shoppers To Open Wallets?

It won''t open mine.

My wallet has been slowly closing through the last 8 years as my income has been slowly shrinking;
closing my wallet is the only way to avoid being another victim of run away dept.

Millions of Americans are spending less because they are making less and thus, are unintentially tanking the economy.

Want to restore the economy? figure out how to restore and grow middle class living wages.

In the mean time, I will continue buying everything I can, USED, thus Tax Free, with Credit Free Cash.

[yelobrikroad]

As I shopped and bought my $8 purchase of a calendar, I could not help but look at all the people milling about the mall without bags and peering into the stores filled with items made in China. The real issue here is not "helping the retailers" but rather escalating the downfall of America by buying Chinese goods and clothing made in other foreign lands. I wish America would return to it''s greatness as a manufacturer, but alas the unions have spoiled our workers to such a degree that everything is too expensive to be made here in the U.S. So here I sit looking at my calendar noting the side of the box with it''s proud display of "Printed in China" Sorry, America, I had no other choice, but at least I didn''t buy two!

[samthetvcat]

---"Bush was saying to go shopping so that way he would get more donations from walmart executives..."---
Posted by auscross1277

Oh yeah, that''s true - Bush was the worst! (jmo!)

[samthetvcat]

---"The biggest difference being that Bush wanted us to spend money we didn''t have(credit), Where as Obama wants to put people to work so they actually have "money" to spend."---
Posted by DebinOK1

I guess people tend to think of the ''Government'' as being somebody other than us :)

The balance sheet is such that either consumers have to deficit spend or Governments do to keep the economy going - we reached the limit on consumers and industry going into debt, I guess we''re about to find out the limits of Government going into debt.

If you start asking too many questions, the left get really defensive and start lashing out with derogatory comments, so I guess we''re just going to have to wait and see if a tipping point is reached and where we go from there if we do . . .

[auscross1277]

PS Like Barack''''''''s not coming out and saying ''''''''go shopping'''''''', but the goal of his stimulus plan is to get us to go shopping . . . I guess I''''''''m equating non-verbal communication with Bush''''''''s more direct advocacy . . .

Posted by SamTheTVCat
********************
The biggest difference being that Bush wanted us to spend money we didn''''t have(credit), Where as Obama wants to put people to work so they actually have "money" to spend.
Posted by DebinOK1 at 01:53 PM : Dec 29, 2008
*** Also... Bush and Republicans got millions and billions of dollars from the Walmart Executives.... Bush was saying to go shopping so that way he would get more donations from walmart executives... that is why bush and the republicans are evil! That money that walmart executives gave and continue to give to republicans... should be going to the cashiers and stockers... not the republican party!

[trillion1]

Read a person''s comment on another post saying how their family learned how to shop for needs rather than wants. Then they listed the video games they''d bought. No wonder so many people have money trouble.

There are too many emergencies in life (especially if you''re a homeowner) to have a massive loan balance on a credit card. What was once a $2000.00 balance suddendly becomes a $2500.00 or $3000.00 balance if something major goes wrong. ie: Car breaks down or Water Heater goes out.

I have a DEBIT card and ONE credit card. 99.9% of the time I use the DEBIT card. Before using the Credit Card, I ask myself three questions: 1) Do I just want it? 2) Do I need it? 3) Is it a MUST item? If it is NOT a MUST item, then I wait until I have enough in my Debit card.

Most people get trapped on items 1 and 2 and it''s NOT a good way to live. Living beyound your means get''s you in more trouble more often than not.

[debinok1]

PS Like Barack''''s not coming out and saying ''''go shopping'''', but the goal of his stimulus plan is to get us to go shopping . . . I guess I''''m equating non-verbal communication with Bush''''s more direct advocacy . . .

Posted by SamTheTVCat
********************
The biggest difference being that Bush wanted us to spend money we didn''t have(credit), Where as Obama wants to put people to work so they actually have "money" to spend.

[samthetvcat]

PS Like Barack''s not coming out and saying ''go shopping'', but the goal of his stimulus plan is to get us to go shopping . . . I guess I''m equating non-verbal communication with Bush''s more direct advocacy . . .

[samthetvcat]

-----"buy less......reduce your credit balance......keep your car longer before trading it in......buy less house.......be smart"-----
Posted by navyjimfl

Remember how Barack was mocking Shrub for urging us all to go shopping - and now that the shoe is on the other foot, Barack''s basically urging us to do the same . . .

I don''t know what the lesson is in that . . . just thought that was an ironic twist . . .

[debinok1]

Maybe now we can start getting the cell phones detached from our ears and the ears of our kids, get the TVs out of the bedrooms so they can sleep at night, and actually sit down and watch TV together as a family in the "living room". Teach our kids to read a "map" instead of having the computer telling them where to turn. Maybe now without cell phones and Ipods our kids will actually "learn" in school instead of texting their friends and learn english instead of textish. There really are benefits to living without so much technology. Who knows maybe now people will realise a family of 4 does not need 4000 sq feet of living space.

[navyjimfl]

buy less......reduce your credit balance......keep your car longer before trading it in......buy less house.......be smart

[yelobrikroad]

As I shopped and bought my $8 purchase of a calendar, I could not help but look at all the people milling about the mall without bags and peering into the stores filled with items made in China. The real issue here is not "helping the retailers" but rather escalating the downfall of America by buying Chinese goods and clothing made in other foreign lands. I wish America would return to it''s greatness as a manufacturer, but alas the unions have spoiled our workers to such a degree that everything is too expensive to be made here in the U.S. So here I sit looking at my calendar noting the side of the box with it''s proud display of "Printed in China" Sorry, America, I had no other choice, but at least I didn''t buy two!

[yelobrikroad]

As I shopped and bought my $8 purchase of a calendar, I could not help but look at all the people milling about the mall without bags and peering into the stores filled with items made in China. The real issue here is not "helping the retailers" but rather escalating the downfall of America by buying Chinese goods and clothing made in other foreign lands. I wish America would return to it''s greatness as a manufacturer, but alas the unions have spoiled our workers to such a degree that everything is too expensive to be made here in the U.S. So here I sit looking at my calendar noting the side of the box with it''s proud display of "Printed in China" Sorry, America, I had no other choice, but at least I didn''t buy two!

[yelobrikroad]

As I shopped and bought my $8 purchase of a calendar, I could not help but look at all the people milling about the mall without bags and peering into the stores filled with items made in China. The real issue here is not "helping the retailers" but rather escalating the downfall of America by buying Chinese goods and clothing made in other foreign lands. I wish America would return to it''s greatness as a manufacturer, but alas the unions have spoiled our workers to such a degree that everything is too expensive to be made here in the U.S. So here I sit looking at my calendar noting the side of the box with it''s proud display of "Printed in China" Sorry, America, I had no other choice, but at least I didn''t buy two!

[yelobrikroad]

As I shopped and bought my $8 purchase of a calendar, I could not help but look at all the people milling about the mall without bags and peering into the stores filled with items made in China. The real issue here is not "helping the retailers" but rather escalating the downfall of America by buying Chinese goods and clothing made in other foreign lands. I wish America would return to it''s greatness as a manufacturer, but alas the unions have spoiled our workers to such a degree that everything is too expensive to be made here in the U.S. So here I sit looking at my calendar noting the side of the box with it''s proud display of "Printed in China" Sorry, America, I had no other choice, but at least I didn''t buy two!

[yelobrikroad]

As I shopped and bought my $8 purchase of a calendar, I could not help but look at all the people milling about the mall without bags and peering into the stores filled with items made in China. The real issue here is not "helping the retailers" but rather escalating the downfall of America by buying Chinese goods and clothing made in other foreign lands. I wish America would return to it''s greatness as a manufacturer, but alas the unions have spoiled our workers to such a degree that everything is too expensive to be made here in the U.S. So here I sit looking at my calendar noting the side of the box with it''s proud display of "Printed in China" Sorry, America, I had no other choice, but at least I didn''t buy two!