Consumers Looking for Deep Discounts in This Holiday Season

The consumers in US may not enjoy the price discounts that they had last year. They will not shop as much – a decision that many American retailers have not taken kindly. In a survey, consumers have pointed out that they want 50 per cent discounts at least on all goods. Such heavy discounts would only induce them to buy, they said. The research was conducted by America's Research Group.

The research showed that 32.8 per cent of the 1,000 interviewed were looking for a discount of 50 per cent. More than 19 per cent were looking for even a higher cut of 60 per cent. There is even a smaller percentage of consumers – 15.2 per cent – who are hankering for a 70 per cent slash.

About 32.8 per cent of the 1,000 people interviewed wanted a price cut of 50 per cent. A slightly lesser percentage of people – 19.6 per cent wanted a cut of 60 per cent while a still smaller share of consumers – 15.2 per cent – are hankering for a discount of 70 per cent. About 31.2 per cent of the consumers are looking for a 40 per cent discount.

The founder of America's Research Group, Britt Beemer, said that retailers may have to bow down before the customers, otherwise the Christmas spirit will fizzle out. It may be noted that retailers had given huge discounts in 2008 to clear shelves. The downturn had left them with no other option. Stocks had to be cleared and last winter was easily the worst holiday in decades. The shopping season for this year starts on November 27. It comes a day after Thanksgiving.

The retailers had cut inventories in the hope that they would be able to limit the discount. But they will be disappointed to find that it may be difficult to retrain the habits of shoppers. Sales could also plummet as more shoppers refrain from using credit cards. Most have been left with no choice because the card issuing agencies have cut credit lines. In the surveyed group, only 14.2 per cent said that they would use cards for making purchases.

Beemer said if shoppers indeed follow this, the retailing industry would be hard hit. When a consumer pays with cash, he spends only what he has in his pocket. However, a person tends to spend 40 per cent more when he shops using his credit card. That may not be good news for the retailing industry.