Deal Hunters May Be Disappointed This Holiday Season
Shoppers will find only modest discounts this holiday season.
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.
-
Strategies to Optimize Your Social Security Benefits
To maximize what you can collect, it’s crucial to know when you can file, how delaying filing affects your checks and the income limit if you’re still working.
By Jason “JB” Beckett Published
-
Don’t Forget to Update Beneficiaries After a Gray Divorce
Some states automatically revoke a former spouse as a beneficiary on some accounts. Waivers can be used, too. Best not to leave it up to your state, though.
By Andrew Hatherley, CDFA®, CRPC® Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel Procrastinator? No matter. You can pull off a fun and memorable getaway on a moment's notice — without breaking the bank.
By Vaishali Varu Last updated
-
How Much Life Insurance Do You Need?
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
By Kimberly Lankford Published
-
Five Reasons You Shouldn't Shop on Amazon Prime Day
Smart Buying Think twice before getting lured into buying a bunch of stuff you don't need just because it's on sale.
By Andrea Browne Taylor Published
-
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
By Kaitlin Pitsker Published