The Norman Transcript

Homepage

November 24, 2013

Americans won’t spend without deals

NEW YORK — This holiday season, Americans may not spend their green unless they see more red.

Despite signs that the economy is improving, big store chains like Wal-Mart and Kohl’s don’t expect Americans to have much holiday shopping cheer unless they see bold, red signs that offer huge discounts. As a result, shoppers are seeing big sales events earlier and more often than in previous holiday seasons.

Retailers are trying to lure shoppers like Marissa Anwar, who has been doing more bargain hunting compared with last year.

The operations consultant, who lives in Toronto and New York City, said the economy “hasn’t been great” and she’s lost clients. As a result, she cut her shopping budget to $2,800 from last year’s $4,000.

“I was a former ‘spend-aholic,”’said Anwar, 29. “Now, I want to make sure I have the money before I spend it.”

It’s a problem that retailers know all too well. Since the recession began in late 2007, stores have had to offer financially-strapped Americans ever bigger price cuts just to get them into stores. But discounts eat away at profits.

So far, Wal-Mart, Target and Kohl’s are among more than two dozen major chains that lowered their profit outlooks for either the quarter or the year. A big reason is the expectation that they’ll have to offer huge discounts in order to get shoppers to spend.

There are already signs that retailers are aggressively discounting. Wal-Mart, for instance, on Friday started matching or beating the prices certain competitors like Best Buy are advertising for toys and electronics for the day after Thanksgiving — known as Black Friday. Best Buy also plans to match rivals’ prices, even after customers have purchased items. And Target, better known for its whimsical advertising, is touting prices in TV ads for the first time in at least a decade.

Text Only | Photo Reprints
Headlines

Sports

Opinion

Features
Must Read

Editorials

Video
Raw: More Than 100,000 Gather for Easter Sunday Raw: Greeks Celebrate Easter With "Rocket War" Police Question Captain, Crew on Ferry Disaster Raw: Orthodox Christians Observe Easter Rite Ceremony Marks 19th Anniversary of OKC Bombing Raw: Four French Journalists Freed From Syria Raw: Massive 7.2 Earthquake Rocks Mexico Captain of Sunken SKorean Ferry Arrested Raw: Fire Destroys 3 N.J. Beachfront Homes Raw: Pope Presides Over Good Friday Mass Raw: Space X Launches to Space Station Superheroes Descend on Capitol Mall Man Charged in Kansas City Highway Shootings Obama Awards Navy Football Trophy Anti-semitic Leaflets Posted in Eastern Ukraine Raw: Magnitude-7.2 Earthquake Shakes Mexico City Ceremony at MIT Remembers One of Boston's Finest Raw: Students Hurt in Colo. School Bus Crash Deadly Avalanche Sweeps Slopes of Mount Everest
Business

Photos


Facebook