With the Christmas shopping season fast approaching, it appears that consumers may be in the driver’s seat this year. Retailers are positioning themselves to offer deep discounts in an effort to lure recession-weary consumers into parting with their cash.
Economic jitters are making people hold on to their money and only spend on essentials. Back-to-school sales were great for the first two weeks of September, but then sales trailed off after consumers felt they had spent enough. This is a sign that people are holding on to their money and resisting the temptation to spend excessively.
We are looking at a 2 – 3 percent sales growth this season. 4 percent is considered healthy, if inflation is low.
Many people are sticking to necessities and practical gifts this year. Wal-Mart is following that trend this season.
Look for big sales and deep discounts this holiday season!