The Wall Street Journal reported on October 6, 2010 by reporter Elizabeth Holmes that forecasters are predicting a better holiday season for U.S. retailers by discounting, discounting, and discounting some more.
Holiday Sales Increase
According to the article, “The National Retail Federation expects holiday sales to rise 2.3 percent over last year to $447.1 billion, the biggest increase in three years.” The expected increase is attributed to the discount pricing plans of major retailers such as Wal-Mart.
Lower stock quantities allowed retailers last year to not use discount pricing to drive people into stores and increase sales. This year, with a smaller sales spurt than anticipated with back-to-school shopping, sales have slowed indicating that the holiday season may not live up to what retailers need. So the discounting pricing structure will make a return this holiday season.
