Shoppers Have Upper Hand
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24.12.08, 11:25
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Retail
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With US holiday sales shaping up to be the lowest in years, possibly the worst since the industry began annual comparisons in 1969, retailers say they're taking consumers' demands for good deals seriously, writes Associated Press (AP).
Some are extending return policies, while others are matching competitors' prices. Many are volunteering on-the-spot discounts and even letting customers haggle prices well down from what's marked in a desperate bid to make the cash register ring, said the AP report.
"You'd have to be a moron not to ask for a discount," said Stephen Hoch, a retailing expert at the Wharton School at the University of Pennsylvania.
More and more consumers are doing just that, treating a trip to the mall like a visit to the used car lot.
Shoppers are also being far more savvy about asking retailers to match a competitor's lower price.
Diana Thang, manager of Grace Jewelers near San Francisco's Union Square, told AP she and her staff are bargaining more than she ever has in two-plus decades in the business. But it's not working wonders.
"They have a budget," Thang said of most customers this season. "We give a low, low price and they still can't accept it. They're looking at more than $1,000 stuff, and they want to spend $200 or $300."
With sales slow at virtually all retailers, experts say customers now have the upper hand. And even some who don't explicitly ask for a discount or price match are pressing for better deals.
For some retailers, desperation is setting in. The new year brings new inventory, so retailers typically try to clear out the old stock by year's end. Stores are increasingly willing to do whatever they can to get rid of merchandise - even offering discounts on the spot, AP said.
If the International Council of Shopping Centers' prediction for this season's sales comes true, it would be the weakest season since the index of same-store sales started in 1969. The group expects same-store sales, or sales at stores open at least a year, to be down 1% in November and December - maybe more - compared with last year, it said.
Even massive discounts on Black Friday - the day after Thanksgiving, historically the point when retailers began to turn a profit - didn't do much to help boost sales, according to AP.
“Retailers have pulled every single trick out of their quiver of arrows that has worked in the past and what they're seeing this year is that it's just not working," said Hoch at Wharton.
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By: PolishedPrices
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