Nov 21, 2008 11:19 am US/Central
Retailers Sell Bargains Before Black Friday
Poor Economy Makes Bargains All The More Important
CHICAGO (CBS) ―
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A shopper examines the fashions for sale at the Old Navy store downtown.
CBS
It's only one week until Black Friday, but particularly with everyone tightening their belt and looking for bargains, you might want to scoop up good holiday deals right now.
As CBS 2's Joanie Lum reports, shoppers on State Street downtown are watching their wallets, but also watching early promotions and wondering if they should take advantage of them or wait until Black Friday.
Stores are using creative marketing to lure shoppers in before the day after Thanksgiving, the traditional start of the holiday shopping season. Among the marketing schemes are $15 deals and 50 to 75 percent off sales.
But with all the uncertainty about the economy, people are worried about their job and their retirements. Thus, consumers are far more interested than usual in getting the very best price for their gifts.
Some people act on the sales, while others think they can wait until prices really drop.
"I'm looking for sales; kind of waiting to buy some things to try to see if it's going to get better," said Lisa Price.
"The same deals are out there right now that are after Thanksgiving, so I've noticed that," said Terri Page. "I just know that the stores are struggling just like we all are, and so they're trying to best to do what they can."
"I'm looking for a deal," said Jack Zavana. "It's very expensive, some things, but there still are bargains."
Peter Gill of the Illinois Retail Merchants Association said the price wars make good business sense
"I think it's just the competitive nature in the difficult economic times," said Peter Gill of the Illinois Retail Merchants Association. "The shoppers are going to be spending less money; they want to be first in line for that money.
However, economists warn of consumer prices falling too much, which could mean deflation. Last month, the Consumer Price Index fell 1 percent – the highest amount in the past 61 years. While deflation may benefit consumers, it also damages corporate profits, makes debts harder to pay, and undermines the impact of such protective measures as interest rate cuts by the Federal Reserve.
The last time severe deflation plagued the U.S. marketplace was during the Great Depression.
But on the smaller scale, the best bargain is the primary concern for the struggling consumer. With that in mind, retailers are also offering in-store specials where a shopper gets a deal on the spot. They hope that kind of tempting deal will draw attention, and they predict shoppers won't go to as many stores this year.
CBS 2's Joanie Lum contributed to this report.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
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