Are We in Store for the Best Black Friday Since 2008?
At dealnews, every day is like Black Friday — but the Black Friday only happens once a year. And luckily for our deal-savvy readers, this year's deals are going to be sweet! (See: the cookie to the right.) So far, the economic and retail signs are indicating that this could be one of the strongest Black Fridays since 2008.
According to an article from SmartMoney's Quentin Fottrell, retailers have actually experienced an increase in sales margins recently — greater than expected for this post-recession state. Normally greater retailer revenue might indicate fewer steep sales, but several analysts — including our own Jeffrey Contray — predict deep discounts this holiday season.
So what exactly are consumers buying that has driven retailers' revenues up? The National Retail Federation explains that while consumers are still in a frugal state of mind, they're purchasing more necessities, like small household appliances, and bargain-hunting consumers are frequenting discount stores.
Because of these factors, Contray believes many major retailers are still left with a glut of unsold goods that they're going to want to move. "The combination of high inventory levels and a glum economic outlook could translate to strong discounting on par with what we saw in 2008," he told SmartMoney.
In addition to strong sales this Black Friday, there might be additional incentive to spend: Credit card interest rates have fallen below 13% for the first time since 2008. This slight rebound in credit may tempt many consumers to shop for more than just the necessities this season. [SmartMoney]
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