Deal Hunters May Be Disappointed This Holiday Season
Shoppers will find only modest discounts this holiday season.
- (opens in new tab)
- (opens in new tab)
- (opens in new tab)
- Newsletter sign up Newsletter
Frank Badillo is a senior economist with consulting firm Kantar Retail.
What’s the outlook for holiday sales? Black Friday and Cyber Monday are more important this year for price-sensitive consumers, but people could be hard-pressed to find the same great deals they found last year. We expect weaker spending for the holidays overall because of the turmoil in the stock market and economic uncertainty. Holiday sales will likely increase at only half of last year’s 5.5% growth rate.
What types of deals can shoppers expect? Retailers could start holiday promotions by early November. You’ll see more deals offering a certain percentage or dollar amount off a total purchase -- such as $10 off if you spend $25 or $50 -- rather than x% off a particular item. Higher commodity costs for retailers are limiting their ability to cut prices. Offering a dollar amount off a total purchase allows retailers to preserve price increases for specific items while offering savings to the consumer. Shoppers should also be on the lookout for deterioration in the quality of clothing -- whether it’s thinner fabric or fewer accessories -- as retailers try to maintain profits.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
What are the best ways to shop this year? Savvy shoppers will find better deals online. Shopping online gives consumers the information and tools they need to compare prices. Expect lots of free shipping, too. We’ll see more retailers come up with new tools to offer value. A new app from Lowe’s is a good example; besides allowing you to shop online, it lets users in the store scan items on the shelves to get more product information or watch demos. Getting on retailers’ e-mail lists will alert you to deals. You can also find deals on stores’ Twitter feeds and Facebook pages.
Where will consumers find the best buys? Whether it’s Walmart, Target or the dollar stores, mass-value retailers will offer the best deals. Their mid- to low-income shoppers are looking for bargains more than ever in this economic environment, and competitive pressures are high. You’ll find attractive prices on PCs and tablet computers, as well as toys -- particularly video games and consoles. For apparel, though, take a look at upscale department stores, such as Saks. If wealthier shoppers pull back due to the fall-off in the stock market, those stores may offer deals.
-
-
Top Money Market Accounts 2023
Money market accounts are interest-bearing accounts at a bank or credit union, typically paying high interest rates. Here are the best right now.
By Erin Bendig • Published
-
Stock Market Today: Stocks Brush Off Deutsche Bank Troubles
Troubling financial sector headlines kept stocks lower for most of the day, but the major indexes pushed higher by the close.
By Karee Venema • Published
-
Best Cash Back Credit Cards March 2023
Smart Buying Looking for the credit card that pays the most cash back? These lenders may pay hundreds of dollars, with minimum hassle.
By Lisa Gerstner • Last updated
-
I-Bond Rate Is 6.89% for Next Six Months
Investing for Income If you missed out on the opportunity to buy I-bonds at their recent high, don’t despair. The new rate is still good, and even has a little sweetener built in.
By David Muhlbaum • Last updated
-
What Are I-Bonds?
savings bonds Inflation has made Series I savings bonds enormously popular with risk-averse investors. How do they work?
By Lisa Gerstner • Last updated
-
Netflix Password Sharing Crackdown: What Will It Cost You?
After threatening to limit the popular practice of password sharing for months, the streaming giant has outlined a plan to make it happen.
By David Muhlbaum • Last updated
-
Your Guide to Open Enrollment 2023
Employee Benefits Health care costs continue to climb, but subsidies will make some plans more affordable.
By Rivan V. Stinson • Published
-
Watch Out for Flood-Damaged Cars from Hurricane Ian
Buying & Leasing a Car In the wake of Hurricane Ian, more flood-damaged cars may hit the market. Car prices may rise further because of increased demand as well.
By Bob Niedt • Last updated
-
What You Need to Know About Life Insurance Settlements
life insurance If your life insurance payments don’t seem worth it anymore, consider these options for keeping the value.
By David Rodeck • Published
-
Best Travel Rewards Credit Cards March 2023
credit cards Business road warriors and leisure travelers can use travel rewards credit cards to turn miles logged into other things — including more travel.
By Lisa Gerstner • Last updated