Nov 14, 2008 5:18 pm US/Central
Retailers Use Sales To Lure Cash-Strapped Shoppers
CHICAGO (CBS) ―
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Retailers are advertising big sales in newspapers, weeks before Thanksgiving.
CBS
The news going into the holiday shopping season isn't great for stores. Retail sales fell 2.8 percent in October, the largest decline on record.
But that could mean good things for cash-strapped shoppers. Any retailer's goal is to keep that cash register ringing, and stores are very aware the economic climate could cause a big chill in consumer spending this holiday shopping season.
"I'm planning to spend less, I just cannot afford to do more this year," said shopper Luradean Flowers.
She says sales are especially important to her right now. The good news is it doesn't appear as if she'll have a tough time finding them.
Big markdowns and door-busters are being advertised in newspapers and flyers. There are even holiday sale signs in Michigan Avenue windows -- and it's not even Thanksgiving yet.
Morningstar equity analyst Michelle Chang says retailers are just trying to tap into the current consumer mindset.
"I think there's definitely a bigger push for value. Sales make consumer feel that they're getting a good deal for the dollar they're spending," Chang said. "I think it's probably larger sales on a larger scale."
But managers at Target say their push to wrap up savings isn't necessarily coming any earlier this year.
"We are coming up on Black Friday -- Thanksgiving-- so I think we're right on schedule," said Target manager Mario Walker.
Macy's has sales right now, but the ads don't say anything about the holidays.
A spokesperson told CBS 2 they plan that campaign months in advance so it's not necessarily tied to the economy.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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