Maria Bartiromo's Investor Agenda
RECENT POSTS
MARIA BARTIROMO'S WALL STREET NEWSLETTER
MOST SHARED
- China Rebalances Economy by Shifting Focus Inland
- Japan Retail Sales Rise as Consumer Sentiment Improves
- Greece Pours $22.6 Billion Into Four Biggest Banks
- Greece to Leave Euro Zone on June 18: Wealth Manager
- Spain's Borrowing Costs Near Danger Level: Bailout Next?
- Are Investors Running Out of Safe Havens to Put Money?
- European Firms Plan for Greek Unrest and Euro Exit
- India's Tumbling Rupee Triggers Convertible Bond Turmoil
- Asian Stocks Decline on Spanish Debt Woes
- Euro Wobbles Near 2-Year Low After Spanish Yields Rise
- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
- Spain's Debt Costs Near Danger Level: Is Bailout Next?
- China Rebalances Economy by Shifting Focus Inland
- US Markets Will Be Watching Europe—And Jobs Report
- India's Tumbling Rupee Roils Convertible Bond Market
- European Companies Plan for Greek Unrest and Euro Exit
- Japan's Marubeni Nears $5 Billion-Plus Gavilon Deal
- Public Pensions Faulted for Bets on Rosy Returns
- Greece to Leave Euro Zone on June 18: Wealth Manager
- Italy 2-Year Borrowing Costs at Peak Since December
RSS FEED
Are Crazy Retail Deals Good for Business?
Text Size 
CNBC Anchor
 |
Jill_Ann |
In recent years, the biggest story of Thanksgiving week has been “Black Friday.”
That’s the unofficial start of the holiday shopping season when crazy people line up at crazy hours to go into stores that open at crazy hours to take advantage of crazy discounts.
Last year, the National Retail Federation estimated that more than 172 million shoppers visited stores and websites over Black Friday weekend with total sales reaching $41 billion – and that was in the midst of the unfolding financial crisis and recession. The 2008 holiday shopping season went on to become one of the weakest in decades.
So, here we are a year later. The S&P 500 is up about 25% in 2009; the economy grew in the third quarter; and by some measures, consumers have shown signs of life. Still, the jobs situation is pretty bleak, so retailers everywhere are curious to see how much people will spend this season. Black Friday is considered a good barometer.
 |
Even a sports betting Web site (bookmaker.com) has odds on how much consumers will spend on Friday.
Retailers are doing everything in their power to lure consumers into the stores. A recent survey showed that 96% of retailers plan to increase their promotions and discounts this year.
You’ve probably heard about a lot of those already. Wal-Mart has been steadily lowering prices in recent weeks. Target is reportedly selling things like coffee makers and slow cookers for $3. Best Buy, Sears, Toys R Us, Disney, Staples and many more are getting in on the act.
As I mentioned in last week’s Investor Brief, there’s an interesting dynamic at work here. Consumers now expect deals, so retailers are somewhat caught in a balancing act of meeting customers’ expectations with attractive discounts yet not slashing prices so dramatically that profit margins virtually disappear.
I’m particularly interested in how this holiday shopping season plays out, and I will continue to follow it with you. Consumer spending is always important (roughly two-thirds of the economy), but the stakes are higher than usual this year as the economy is just emerging from the devastating recession.
Enjoy the deals available this holiday shopping season. The jury is still out whether those deals will end up being good as good for businesses as they are for consumers.
_____________________________
- The Dow 30 in Real Time
- The CNBC Stock Blog
- Must Read: Skip The Hype and Snag The Best Black Friday Deals
- Take Suze Orman's Healthier & Wealthier You Quiz
_____________________________
Questions? Comments? Write to
Data is a real-time snapshot *Data is delayed at least 15 minutes
