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Deeper Discounts Continue to Fuel Holiday Shopping.


 

Deeper discounts continue to fuel holiday shopping. With inventory at higher levels than expected this holiday season, retailers must motivate shoppers to spend in order to clear the merchandise. As a result, the deals just keep coming.


 

Consumers can expect the last week before Christmas to entice them to spend – not just on others but for themselves as well. Shoppers have a pent up demand for consumer products because they did not purchase in September and October. A loss of confidence in the health of the economy resulting from rising gasoline prices in August (up to almost $3 per gallon) and a halt in the rise of housing prices felt its effect into September and October. Even though gas prices came down, the psychological impact of a halt in house appreciation continued to effect spending. As a result, a pent up need is causing consumers to spend more in the last few weeks before Christmas. Many consumers have not even started their holiday shopping going into the week before Christmas.


 
 
 
 
 
 
 
 
 
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