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How Low Can Retailers Go?

With the early signs pointing to a lackluster start to the holiday selling season, many are wondering how low retailers can cut their prices to drive customers through the doors

Shoppers seem particular hungry for good deals this holiday season, and are showing a little discipline when they don't get the deal they were bargaining for.

One interesting tidbit: On price-comparison shopping Web site, Pricegrabber.com, the average price of a Blu-Ray disc player fell from $285 to $221 over the past few days. That's a 22 percent drop in price.

While some of the decline may be due to saavy customers digging up the lowest prices, at least some portion may be tied to price adjustments made retailers, according to Pricegrabber.com President Ron LaPierre.

Prices of digital cameras, another hot holiday item, have also fallen 14 percent from an average of $518 to $443 during the same period.

"Retailers are getting more and more educated from year to year about how to manage their online business," LaPierre said.

And some of that may be making nimble price changes to drive sales.

This all comes ahead of "Cyber Monday," which is a term coined by the trade group National Retail Federation in 2005 to describe the Monday after the Thanksgiving holiday. This day, while often not the busiest online shopping day, has become the unofficial kickoff for the busy online retail season and a reason for online retailers to roll out extra promotions.

Questions? Comments? retaildetail@cnbc.com

Retail

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