Will Cyber Monday Save the Retail Season?

So, another Black Friday has come and gone. Based on early estimates, plenty of shoppers hit the stores…they just didn’t spend a whole lot by industry standards. According to CNNMoney, total retail spending was about $41.2 billion. Since many of these items were so deeply discounted, though, retail profits will not total near that amount.

The retail sector is now hoping that online sales on Cyber Monday today will boost profits. Among the sites offering bargains are Apple, Amazon, Borders and Overstock.com. But, while more consumers are expected to shop online this year, CNN quotes a Disney retail exec as saying “Shoppers are focused on value. But you could find value at $10 or at $50.” Bottom line: People are looking for bargains and they’re willing to shop around until they find it. If stores are hoping for increased sales, they’re going to have to pull out all the stops to encourage spending.

Interestingly, while Black Friday gets the hype, the busiest shopping day of the year tends to be the Saturday before Christimas. Seems like consumers have figured out that if they holdout for great deals, retailers will lower prices right up until the 25th. If so, shoppers hold all the (credit) cards and the stores are on the ropes.

Posted by on November 30, 2009. Filed under US Business News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.