Consumers Look for Holiday Bargains as They Have in Autos All Year
November 30, 2009
The conclusion by trackers of overly-hyped Black Friday holiday shopping revealed a trend seen in the auto industry all year: shoppers are looking but in the end, spending less and buying only when they find a bargain.
Automakers monitor shopping patterns as consumer spending makes up 70 percent of the U.S. economy and plays a large role in how quickly the country can recover from a recession that began in December 2007.
And there are similarities in patterns between the retail and autos. In fact, automakers have seen the bargain-hunting trend yearlong. Shopping and sales soared in summer during the government's Cash for Clunkers program. Brands known for value, including Subaru, Hyundai and Kia, have made inroads with bargain-seeking shoppers.
Both retailers and automakers are being careful about inventory, which has been kept low in stores but is building in dealerships after this summer's depletion by Cash for Clunkers.
On the plus side of the retail equation, trackers of holiday shopping said the fact that people were shopping and not hibernating as they did last was encouraging. However, others said lower buying and continued bargain hunting dimmed hopes for a retail comeback that would have propelled the economy early in 2010. They predict continued low prices and bargain through year-end.
One forecaster, on the eve of Black Friday, was quoted as saying he expected spending to increase because consumers are fed up with "frugal fatigue" and ready to spend. They may be fed up with frugality, but the reality of their wallets apparently set in at the cash register.
Retailers, like auto manufacturers, are finding consumers are making increased use of the Internet. In fact, online holiday shopping was up on Black Friday, days before Cyber Monday arrived. Internet shopping is expected to continue to climb.
Posted by Michelle Krebs at 10:00 AM under Analysis , Companies | Comments (0) | digg this | Seed Newsvine
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