The Retail Industry's Pain Is Going To Be Your Gain - KMSP-TV

The Willis Report

The Retail Industry's Pain Is Going To Be Your Gain

Posted: Updated:

Holiday sales aren't expected to shoot the lights out this year. In fact, according to the National Retail Federation's annual survey of shoppers, each of us will spend  $738 on gifts, décor and greetings cards, 2 percent less than last year.  But the retail industry's pain is going to be your gain.

That's because shop owners are more determined than ever before to steal business from rivals and that is going to add up to big savings for cost-conscious consumers.  Especially aggressive this year are brick and mortar retailers who are focused on getting their revenge on online retailers that are growing market share and sales every year. Online retailers are still a small proportion of overall holiday sales. Last year, online merchant sales totaled $42.3 billion, versus nearly $580 total sales, but sales growth for the upstarts is typically in double digits and there is no reason to think online retailers will settle for less this year.

As a result, Best Buy is matching prices offered by major online retailers and local bricks and mortar competitors. The change in policy is having a slow but steady, positive impact for the electronics retailer. Even more dramatic, the retailer is running ads touting the chain's stores as "the ultimate holiday showroom." And, that is a surprising invitation to consumers to use the bricks and mortar store to check out products that they could also buy online. In the past, those products would be cheaper in the virtual world, but now Best Buy is betting that even committed online shoppers may make the switch because the price advantage has disappeared. And, Best Buy isn't the only big box retailers looking to take a piece of the online retailers' pie. ToysRUs will match online retailers prices, including Amazon.com, Walmart.com and BestBuy.com.Staples has announced it will match Amazon prices in stores and online.

Another factor that may work in consumers' favor: Because Thanksgiving is a week later than usual and the holiday shopping season is compressed, some retailers are starting promotions earlier than usual. And, you can bet that markdowns will be steep this year as managers try to work down inventories as quickly as possible. All in all, even if your budget for the holidays is smaller than last year, you may get more for your money. And, one thing is for sure, the best deals will continue to go to those who wait to buy.

  • PoliticsMore>>

  • Agents Get Subsidized 'Obamacare' Using Fake IDs

    Agents Get Subsidized 'Obamacare' Using Fake IDs

    Wednesday, July 23 2014 12:57 PM EDT2014-07-23 16:57:39 GMT
    Undercover investigators using fake identities were able to secure taxpayer-subsidized health insurance under President Barack Obama's health care law, congressional investigators said Wednesday.
    Undercover investigators using fake identities were able to secure taxpayer-subsidized health insurance under President Barack Obama's health care law, congressional investigators said Wednesday.
  • President Obama Returns To LA For Fundraisers

    President Obama Returns To LA For Fundraisers

    Wednesday, July 23 2014 12:19 PM EDT2014-07-23 16:19:38 GMT
    President Barack Obama is scheduled to arrive aboard Air Force One at Los Angeles International Airport this afternoon for a planned 24 1/2-hour visit to conduct two political fundraisers and speak at Los Angeles Trade-Technical College.
    President Barack Obama is scheduled to arrive aboard Air Force One at Los Angeles International Airport this afternoon for a planned 24 1/2-hour visit to conduct two political fundraisers and speak at Los Angeles Trade-Technical College.
  • Congressman Adam Schiff: These Are Tough Situations To Deal With

    Congressman Adam Schiff: These Are Tough Situations To Deal With

    Monday, July 21 2014 10:40 AM EDT2014-07-21 14:40:38 GMT
    Pick a spot on the globe and there seems to be a crisis the United States is dealing with.Joining us to discuss the situations in the Middle East and the Ukraine was Congressman Adam Schiff.
    Pick a spot on the globe and there seems to be a crisis the United States is dealing with.Joining us to discuss the situations in the Middle East and the Ukraine was Congressman Adam Schiff.
Powered by WorldNow

KMSP-TV
11358 Viking Drive
Eden Prairie, MN 55344

Phone: (952) 944-9999
Fax: (952) 942-0455

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices