Retailers Not Holiday Deep Discounting

So as the holiday season enters its last few shopping days, it looks as if retailers aren’t going the Black Friday route and offering deep discounts to draw in throngs of shoppers.

“It’s a much more controlled environment,” Saks CEO Stephen Sadove was quoted saying in the Wall Street Journal.

Much of the reason for this is better inventory planning, industry observers say, a practice that has helped chains’ bottom lines, even as sales continue to slide. Plus, there might be pent up demand out there after disappointing sales in November.

Will this strategy work for chains, or is this holiday selling period bound to prove tough again for the industry?

1 Response to “Retailers Not Holiday Deep Discounting”

  1. 1 Market Participant December 20, 2009 at 11:47 pm

    Won’t work, just wait till the post christmas sales get ramped. The great storm of 2009, has wiped out super saturday across much of the mid atlantic region.

    See for example what WaPo is writing

    Only half of the stores in Taubman Centers Inc’s three Virginia malls were open because bad road conditions prevented staff from getting to work. One of those malls, in the Washington suburb of Fairfax, will close at least five hours early due to weather, said spokeswoman Karen Mac Donald.

    “The one thing a retailer doesn’t want is a major snowstorm on the Saturday before Christmas,” said Marshal Cohen, chief industry analyst at the NPD Group.

    “The weather this year is like Bernie Madoff last year. A terrible ending to a terrible year,” said Shawn Kravetz, president of hedge fund Esplanade Capital. “The timing is brutal.”

    To be compared to Bernie Madoff of all things.

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