News

Consumers aren't buying into discount promises

December 7, 2011

Despite research stating that most retailers are offering discounts better than or as steep as last year, consumers aren't buying it and are waiting as long as possible to buy gifts, according to a story on Oregon Live.

Although the story admitted that most retailers declined to discuss their pricing strategy for competitive reasons, it pointed out that retailer American Eagle Outfitters offered 40 percent off everything on Black Friday. That was better than the 20 percent off until noon that it offered the preceding two years, according to analysts at Jefferies & Co..

Also, the average discount at Best Buy on Black Friday was nearly 45 percent, versus about 34 percent last year. The average discount at Walmart was about 47 percent, better than last year's average of 43 percent.

Many customers think it's all hype, however. Shopper Karen Finch told the newspaper that she is waiting to buy a tablet for her son until closer to Christmas Day because she thinks the discounts on Amazon.com — 48 percent off a $500 Blackberry version, for instance — aren't good enough.

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