Email
Password
Remember meForgot password?
    Log in with Twitter

article imageHarsh Holiday Selling Season Likely

By Barbara Sowell     Dec 1, 2008 in Business
Despite a flood of shoppers this past weekend, this holiday shopping season promises to be one of the worst in decades. Weekend shopping was up by 25 million more shoppers this year but retail sales were only up 3% from last year.
Despite the fact that the National Retail Federation reported that shoppers spent an average $372.57 during the Black Friday weekend, that’s just not enough. According to Business Week, slim sales growth and deep discounts make for a harsh holiday sales season.
Desperate retailers have been offering “over-the-top” treatment to lure in shoppers. Although the deep discounts and heavy promotions for Black Friday worked to get shoppers in and buying, few stores are celebrating because sales growth was anemic.
Black Friday retail sales totaled $10.6 billion, up 3% from a year earlier, compared with 7% growth for the same period in 2007. And with so much price slashing, many of those sales probably won't generate profits.
Business Week also reports that retail stores are offering some of the biggest savings shoppers have seen in decades because consumers are “under siege.” High credit-card bills, dropping home values, and job insecurity made consumer spending drop in October. This was “the biggest drop since the terror attacks of 2001, according to the Commerce Dept.”
Late shoppers are likely to catch the best savings. Business Week reports that analysts predict the Black Friday weekend bump won’t last, the pace of sales won’t be as brisk, and that “stores are likely to keep slashing prices.”
More about Sales, Retail, Online, Black friday, Holiday season
More news from
Latest News
Top News