Holiday Sales Appear to Stall: Are Big Discounts Next?

Wait a second, so the big discounts didnt happen yet, I thought all those retailers announcing all those great sales these last few weeks were the lowest they were going to go, you mean they are going to do even bigger discounts, wow!!!! Of course consumers are extremely stupid when it comes to buying product. They rush, rush, rush to the store believing they will only get that one chance to buy that item at that price not realizing that it will be the same price or even cheaper in the weeks to come.....Again this isnt about Christmas, its about a companies bottom line......sad isnt it. Christmas lost its ways decades and decades ago...



Holiday Sales Appear to Stall: Are Big Discounts Next?
CNBC.com | December 12, 2011 | 03:57 PM EST

After early bird discounts fueled a Black Friday buying boom, retailers are seeing sales dry up halfway through the holiday sales period, a consumer survey completed Sunday showed. The trend may force discounts as deep as 70 percent on coats and flat panel TVs as Christmas Eve approaches.

Forty percent of consumers are completely done with their holiday shopping at this point, up from just 28 percent who were finished at the same time last year, according to the America’s Research Group/UBS Christmas Forecast Survey.

What’s more, only half of consumers hit the malls this last weekend, meaning those that are left are sitting on their hands awaiting bigger mark-offs, the survey showed.

“You could push them over the edge at this point with a 60 to 70 percent discount,” said Britt Beemer, CEO of ARG, who has been conducting the phone survey and marketing research for 27 years. “But most would probably use a credit card, as their budgets are depleted.”

November consumer sales, set to be released by the Commerce Department Tuesday, are expected to show a slight increase from last year’s levels on the late Black Friday boost in the month.

The stock market seems to reflect this discounting game of chicken between consumers and retailers taking place right now. The Consumer Discretionary Select Sector SPDR ETF [ XLY 39.23 -0.12 (-0.31%) ] rallied, right on cue, off a recent low for the fund on Nov. 25, Black Friday. Since then, the fund has topped out and is little changed over the last week.

“While Black Friday sales appeared to give the retailers an early leg up in the season, I believe that continued high unemployment and economic uncertainty will keep spending muted for the vast majority of American consumers,” said Patty Edwards of Trutina Financial.

“Retailers will announce a number of unplanned sales and discounts, hoping to surprise and delight customers into opening their wallets. The big question is how much is left in those wallets that isn't pledged to the light bill.”