While Wal-Mart Stores, Inc. (NYSE: WMT) keeps racking up sales as the king of retail in a depression, competitors certainly don't want to lose out on holiday sales. In fact, with such a bleak holiday shopping season predicted by multiple market pundits, some retailers are trying to divert those upcoming Wal-Mart shoppers into their own shoppers. But how?Kohl's Corp. (NYSE: KSS) held a three-day Christmas sale that actually ends today -- the day before Black Friday. The department store-style retailer offered price cuts to the tune of 40% during the last three days in an attempt to steal some of Wal-Mart's customers. You know, the ones who will brave chilly temperatures and 5:00 a.m. waiting lines come Friday morning. The same goes for retailer Macy's, Inc. (NYSE: M). Macy's planned its biggest discounts last week, trying to pull in Black Friday shoppers a full week early.
Did the strategy work? This year would be a hard year to measure since not all things are equal. Shoppers are reluctant to pull out the purse or wallet, the stock market is psychotic, home sales are at a standstill, unemployment is rising fast and the economy is circling the average American like a shark.
But then again, this is why competitive pressures have surfaced: retailers are having to fight tooth and nail for every shopper dollar this year, and all the stops must be pulled out. A Gallup poll recently indicated that Americans will spend an average of $616 on gifts this year, a 29% drop from 2007. When a third of the holiday retail dollars go away, it s bare-knuckled fight among retailers - nothing less.
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Reader Comments (Page 1 of 1)
12-01-2008 @ 4:35AM
Short term installment loans said...
“Financial panic” is the term referred to Black Friday in the history of United States. These means people are out for some spending. The holidays are just around the corner, and I know I will only be using fast payday loans if it’s absolutely necessary. Shopping on Black Friday is a holiday tradition for me and my sister. We wake up early, grab a latte from our local coffee shop, and head out to do battle with all the early bird shoppers. This year, things will be different. My sister and I are still going on our annual shopping spree, but I’m sure we’ll skip the latte and opt for a cup of homemade black coffee. Plus, instead of spending our money at fine department stores this year, we are going to have to stretch our dollars as far as possible because our budgets are much tighter. I think my sister and I are smart shoppers, and we’re dealing with the economy in the best way possible. We aren’t foregoing the annual Black Friday holiday shopping trip altogether because, for us, that trip is part of our holiday season. Instead, we’re embracing the quality time we get to spend together as family while being totally aware of how much we’re spending. In fact, this weekend, my sister and I are making sure we have everyone’s lists together and putting together a budget. Smart shopping and budgets should be a must for all Americans this holiday shopping season. I hope others get the opportunity to read the same smart shopping article I did. Smart shoppers have a budget and a plan. Smart shoppers also know that fast payday loans are used in emergency situations only—not for gifts. I won’t go overboard on purchases this season, but if something unexpected comes up, I will definitely consider fast payday loans to help cover costs.
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