Some stores finding deep discounts aren't enough

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From the Associated Press:
Even deep discounts on everyday items don’t seem to be enough to get Walmart shoppers to bite these days, and other chains are worried Americans won’t be in the mood to spend in the months ahead, which are critical for those companies.
On Tuesday, quarterly financial results from retailers including Home Depot and Abercrombie & Fitch showed that profits are rising because retailers are cutting costs and keeping their inventories lean.
But with the economy slowing once again and consumer confidence falling, they expect less out of the rest of the year, and they already have to push harder to get shoppers to buy.
 
They’re probably fed up with all the Chinese garbage WalMart is selling.
 
They’re probably fed up with all the Chinese garbage WalMart is selling.
I agree:eek::eek::eek::eek:

😃

Everyone of these megastores may hire a bunch of people, but I have to wonder how many people the mom and pop stores they put out of business hired.

Another point:

I don’t fill BCP’s. Don’t know of 1 Walxxx that does not do so.

I’m as conservative as they come, but I think megahuge companies, for the most part, have no consciences.
 
Ever since I discovered Etsy, I prefer to buy quality handmade items from actual creative artists / artisans who are real people doing what they love and providing personalized products and customer service rather than shop at Walmart where too much stuff is cookie-cutter boring, cheap, or made in China.
 
What we’re running into know is a confidence issue. People feel the economy is bad and the media is doing nothing but feeding that idea, therefore people are hesitant to buy anything. Literally, we just need people to go out and buy stuff. It’s when people sit on their money that the economy slows to a halt.
Everyone of these megastores may hire a bunch of people, but I have to wonder how many people the mom and pop stores they put out of business hired.
You know, I’ve heard this before. The question isn’t so much how many but who was hired. Mom and pop shops probably only hire family and family friends, while Walmart will hire anyone.
 
What we’re running into know is a confidence issue. People feel the economy is bad and the media is doing nothing but feeding that idea, therefore people are hesitant to buy anything. Literally, we just need people to go out and buy stuff. It’s when people sit on their money that the economy slows to a halt.
If you check history, though, people seem to have more of an inclination to buy when prices go up. I guess they want to buy before prices go up even further if only to increase their stock at home. When prices do down, they wait for further sales. Not everything though.

Price increases beget price increases as demand feeds on itself. Of course credit or leverage feeds it even more.
 
If you check history, though, people seem to have more of an inclination to buy when prices go up. I guess they want to buy before prices go up even further if only to increase their stock at home. When prices do down, they wait for further sales. Not everything though.
That’s deflation. We’re engaging in it ourselves, a bit. We keep putting off purchases as long as possible. And the prices keep dropping. Every time we buy something (including our house) we want to slap ourselves a few months later, as the price drops again. Aaargh! The car we bought two years ago sells for $5k less now. :doh2:

I thought about buying an e-reader last year, but I’m glad I didn’t. You can get a better one for half the price now. I’m thinking that after Thanksgiving… or Christmas… would be a good time to buy.
Price increases beget price increases as demand feeds on itself. Of course credit or leverage feeds it even more.
Yes, credit limits are being lowered, so a lot of people – even those with employment – have less “money” to spend.
 
I agree with the poster who shops at Etsy, where you can find handmade, one-of-a-kind items that you purchase directly from the person who made it. I know many people who have Etsy “stores” and when you purchase from them you are usually purchasing from an individual who is making and selling things on Etsy in order to make ends meet for his/her family.

In addition, I have become very leary of certain items made in China, where I cannot be sure of the content. There have been too many poison and other scares to make me feel comfortable with a product made in China that contains lead or some poisonous chemical. So I am very careful about that sort of thing. I’d rather pay a little more and know a product is safe.

Most of all, I like to buy things made in the USA! 🙂

But as to the topic at hand ~ unfortunately discounts beget discounts. Once any retailer begins to deep discount, or run deep discount sales regularly, customers come to expect them. So they delay purchasing until another sale is announced. In such an environment items at “regular” prices go unsold, or are sold only rarely. On the other hand, most retail concerns depend on the sale of products at “regular” prices to stay in business.

The problem with the whole “discount” environment is, of course, that your average retailer cannot survive in such an environment indefinitely. (When I say the “average retailer” I’m not talking about WalMart, but a company that has one store, usually owned by one person or a small group of persons.) Sure a company can discount to a point, but long term discounting means an ever shrinking “bottom line”. This, in turn, leads to lay-offs of company personnel and, ultimately, bankruptcy and/or business closure.

So while we may enjoy the cheap prices, at least temporarily, the ultimate effect is driving many smaller retailers out of business because they not only can’t make a profit (and remember, the net profit from the business is often the only “income” the owners often receive for all their work) in some cases they can’t even cover basic expenses, so they are forced to close. Over time, this leads to fewer choices for all of us.

Support your local retailer! If you don’t, the next time you go to shop, they may not be there!
 
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