Jul 3, 2008 7:16 pm US/Eastern
As Economic Pains Grow, Retailers Offer Huge Sales
Opportunist Consumers Taking Advantage Of Shopping Opportunities
NEW YORK (CBS) ―
While we celebrate the birth of the United States this Fourth of July, it's not without concerns over the state of the nation, especially its economy.
Every day brings more news of layoffs, higher prices and wage decreases. So what are retailers doing to counter all of this? They're throwing huge sales, to lure you into the stores.
If you can't find a bargain over the next three days, you're not looking very hard.
"The expectation is for the stores to have some good bargains," said Robin Abrams of Lansco Retail Service Group.
Retail sales expert Robin Abrams says if you're in the market for almost anything, now is the time to buy.
"I think also this weekend, many people myself included are not traveling with the high cost for gas and airfare, they're staying here. And they're treating this as a holiday weekend. They're not staying home doing laundry and cleaning house, they're making plans, they're going to brunch, they're going to movies, they're going to museums, they're walking around, and they're shopping," said Abrams.
The U.S. may have been created by the blood and sweat of brave Americans some 232 years ago, but the U.S. economy survives on the shoulders of the American consumer. And even though consumer confidence is down in light of the credit crunch, Wall Street jitters, the mortgage crisis and increases in the prices of gasoline and food, people are, at least for now, still buying things.
Sales in May for some merchants were up. Victoria's Secret saw a 9 percent increase. Neiman Marcus saw a 3.6 percent increase and Abercrombie and Fitch was up 8 percent.
Although retail figures in general, nationwide, are down over last year, Abrams says our area has so far been relatively immune.
"In New York, we don't see as much of that. I tell my kids this is happening elsewhere, but we're still out and we're still buying," said Abrams.
And the people who may be the most important allies for local retailers this July 4th weekend? Our European and Asian friends, those tourists who are here visiting, and buying.
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