Crisis on Wall Street Evokes Mall Scare
By Chad Ingalls
Alarmed by the financial turmoil that has been taking place on Wall Street, discounted prices at retail stores around the country are falling even further to entice consumers to open their wallets for the holiday season.
Analysts were already predicting the lowest holiday sales growth in 24 years, and with the downturn the market has taken, consumers are projected to be heavily cutting back spending. With 8 of 10 people believing the financial crisis will impact them directly, people are cutting back spending and putting as much money away as possible.
Now, new products being shipped in are going directly on sale in hopes of getting them off the shelves before the end of the holiday season, and they are being discounted about 10% more than last year. In addition to this, stores are cutting back on shipment orders to prepare for the anticipated slow holiday season.
With people not being willing to spend money this holiday season, it is looking even more grim for the status of the economy when we know that consumer spending is one of the major things that will help get the country either out of or help avoid a depression. So, if you are planning on saving this year on gifts, take a look at some of the sales, buy some nice things, and help the economy at the same time.
I really agree with your recommendations. ALthough I come from a lower class family, I have been able to do fairly well for myself financially since I have been in college so I am probably one of the few individuals within this nation (aside from young children) who are looking forward to the holiday season. Therefore, I actually plan to spend money this holiday season, especially since I know it is what the economy needs. I am glad to hear that I will be able to take advantage of discounted items but I will make sure I stick to my financial plan and do not go too crazy.
Jazelle Reed - October 3, 2008 at 2:01 pm |
This holiday season will surely come with more bad news for the economy. Sales were already predicted to be down this year, even before the Wall Street crisis. Americans will undoubtedly be cutting back their spending, and the fact that they will be doing this during the most important consumer spending time of the year could spell disaster for some companies.
andrewrobinson01 - October 4, 2008 at 4:00 am |
These companies trying to save themselves from having to report poor quarterly earnings on their next SEC filings in order to keep stock price afloat really need to think of better ways than having sales. Sales might help more units get sold, but it lowers the profit margins and lowers the total revenues.
Do I have a better alternative? No, but some of these companies really need to find one, and fast.
bkriger - October 6, 2008 at 1:14 am |
I realize and believe that all these claims are true about less spending during the holiday season but sometimes its hard to see it. I was at a Tiffany and Co store this past weekend looking at something and the store was packed! It took about half an hour to get someone to answer a question for me. Sometimes its hard to tell that we’re having such a hard time and money is scarce. Just by being in that store this weekend you would have no idea that our economy is in trouble.
tessamacdougall - October 6, 2008 at 10:40 pm |