It is crazy to imagine that stores across the nation are experiencing a slump in sales. Just ten or fifteen years ago, this was the time that retailers made a terrific profit and a bundle on sales. So many in this country celebrate holidays that fall during this time of year, so a lot of gift shopping is expected. However according to the reports many departments, established, high-end, department stores are reporting record low sales. Causing their overall value to drop making those that hold shares in these companies to feel a bit uneasy.
People are just not spending a lot money on things such as clothing and shoes, but have no problem handing out the dollars for items such as electronics, travelling, and home goods. Shoppers are always looking for the best deals. These large department stores just are not able to give the discounts and savings that other online stores are able to provide.
Over the past four years consumer spending have greatly shifted from brick and mortar establishments to those that we are not able to walk into but able to click onto. Online shopping is the way to go. There is just no question of it. Stores such as Amazon and eBay are able to provide and secure deeper discounts from a variety of business selling goods and services. Even individual seller that may be trying to make a little extra money.
What does this mean to the consumer? Look out for greater savings this black Friday. In a last ditch, effort for the end of the year financial reports are publicized stores will try to get their sales up by the hoopla of black Friday. Offering better priced door busters, more available coupons, and greater discounts. Which is great for those shopping like myself that wait to this year to buy those more expensive items that they want for their home, self, and family.
Of course, online stores will keep doing what they are doing; undercutting these brick and mortar with deals and discount, they cannot not even contemplate on offering their customers. Simply because they cannot afford to do so.
What is sad about this whole thing with these department stores is that many economist believe that this is not just a short-term hiccup but also a long-term trend. This is what these large high-end departments stores can expect from here on out. Slow sales, a reduction of customers, and a downward decline to its overall value.
With that being said those departments’ stores that are for the everyday person or offer items at a discount, for example JC Penny, having not been experience these same declines. In fact, their sales have been steadily increasing as they offer specific brands and maintaining everything at a reasonable price. Even Kohl’s have been successful at this.
Then again, all of this could just be something that is happening for the right now. Folks are still affected and are being affected by the economy at large. With the recession that followed the housing fell like a pile of bricks, people just have a completely new outlook on where they want to place their hard-earned dollars. We cannot forget the possible pending recession to come that is being felt in our friends in the east. It is still all too fresh for some to spend with reckless abandonment anymore. It makes more sense to put those bills into something that can be easily resold and money recuperated.
One never knows what the futures holds, only time will if this is this a short term trend or the new world of consumerism. Maybe in a few years people will be over the memories of the past. As I said before only time will tell.