The holidays are approaching which means family time, lots of food and presents!!! But the economy is still struggling and this got me thinking, how are people going to balance needs and wants, and will there actually be any presents under the tree? A recent article in Advertising Age comments on this, and the chaos of Black Friday, which is just around the corner.
According to the article, consumers are starting their shopping early. Google research has shown that Black Friday searches have started two weeks earlier than last year, and terms such as "early Black Friday sales" are popular. This suggests that consumers are shopping around for the best deals before making big purchase decisions.
According to the article, research released last week shows that 39% of consumers are planning on spending less during the holidays than last year. Retail stores need to get creative in finding ways for consumers to spend spend spend! Their response: layaway. Check out the Sears website and you’ll see and option for layway. Best Buy and Kmart are doing it too. According to the article, Walmart’s missing out because it got rid of layaway two years ago. I think these large corporations are smart in providing this option. It can be hard to make a decision knowing that a big chunk of money will be gone and will take a lot of working hours to get back.
Overall, consumers are being smarter this year. They’re using lists, which means no more impulse buying. By researching ahead of time, they are finding the best deals. They’re paying with cash and using layaway. They’re being cautious in their spending habits. It may not be the best thing for the economy right now, but I think it’s safe to say that these are some life skills that some consumers never had before, but benefit from now. So maybe an economic crisis isn’t too bad after all if some of us really learned the value of a dollar.
5 comments:
Holiday shopping and economic crisis are definitely two intertwining themes right now. I've heard many people discussing what's important on their shopping lists, versus what might be able to wait until next year. Personally, I'm even considering venturing out on the dreaded Black Friday to see if I might catch some sales. This is something I've never done before, due to trying to avoid those horrible crowds. I'm sure there are thousands of other people in the same boat this year.
A friend of mine mentioned reading recently about how retailers are having to step up their sales in order to get consumers even interested in their items this holiday season. I've received more coupons and gift offers this year via direct mail than ever before. It should be fabulous, all these sales!...but consumers are still suffering and having to make choices.
I work in the retail industry, and this will be my 3rd holiday season working. I always work Black Friday early in the morning, and it is so funny to see some of the crazy people that go out at 5am to get all the deals.
Although retailers use these deals to get people into the store many times there is a limit to how many of the specific item that they have. The use a bait and switch tactic that gets people in the store, but sell them something else (which usually ends up being more expensive.)
One tactic that I have seen customers use to control their spending is instead of using credit or debit cards, they take out a specific amount of cash, and use that to make their purchases. Credit/debit cards create a detachment from the amount of money being spent. However using cash is a much better way to budget.
I really think this holiday season, especially, I am going to see more people with strict lists and budgets while shopping. Having set items and goals I think is the best way to stay on a budget.
I think this is an interesting topic. With the Christmas buying season really beginning today, I think that it will be interesting to see the kind of money that companies made with their extreme sales going on, and also to see what sales category made the biggest amount of revenue in these hard times (clothing, electronic, etc.). This is a way to decipher if people were buying based off of want or need.
I personally think that during this Christmas season it will be best for people to write lists and buyers to go off of the lists that they recieve. Many people are putting only things that they NEED on their lists rather than things that they want. Items that people need but maybe could not afford to get at an earlier date would be best on a Christmas list if they knew that this is something that they would recieve.
This is a topic that is very relevant this holiday season because so many people are watching their spending habits closely due to the economy. The deals on Black Friday are a good way to get some gifts at a good price...if you are willing to brace the crowds, early morning, and the cold.
I recently saw a news report that shopping online is actually a way to better monitor your spending and make sure you don't over exhaust your credit card. I can definitely see how this is true because you aren't hooked by sale signs and flashy items that catch your attention when you're in the store. Instead you can focus specifically on what you want and have it sent directly to your house. A lot of sites even have free shipping deals and included gift wrap.
This topic is absolutely relevent this holiday season. Shoppers are no longer going out and "finding" gifts for their family and friends but rather making lists and saving money. I see it even in my own family (a family that NEVER plans), and that is very interesting.
I also noticed that this year Black Friday (my first, but not my sister's) was not as busy as in the past. Though people are trying to save money (so you would think it would be a popular day) they simply do not have as much to spend and as a result are not buying as much regardless of the deal. It is sad, but I think we can make it through!
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