High Oil Prices Ââ€" Hurricanes Katrina and Rita pushed already high fuel prices to record levels. Although off of their peak levels, prices are still too high for many consumers who feel pinched and are likely to cut back on spending. Factor in Hurricane Wilma and this will be a tough year for many.
Rising Mortgage Rates Ââ€" Incremental increases in mortgage rates means that mortgage bills are going up, taking away from money that could be used elsewhere. Home sales remain steady, so companies like Home Depot are likely to benefit, while department stores will be scrambling.
Credit Card Changes Ââ€" Our nationÂ’s new bankruptcy laws coupled with credit card companies requiring higher minimum payments will certainly put the squeeze on for some. Not necessarily a bad thing to require higher payments, but the timing couldnÂ’t be worse.
Online retailers have a great opportunity to capitalize on consumerÂ’s reticence. With lower overheads, free shipping, and access to a large pool of inventory, look for online shopping to jump up again this year.
For “brick and mortar†retailers, expect that the motto, “If you cut prices sharply, they will come,†to hold true. Stagnant inventories cost money to maintain; moved merchandise means money that can be applied to the bottom line.
Look for aggressive sales and even price wars this holiday season as merchants redouble their efforts to reel you in. They have to; for some their very survival depends on your patronage.
Shop wisely!
Article Source: http://www.articledashboard.com
Copyright 2005 -- Matthew Keegan is The Article Writer who writes on a variety of topics including: advocacy, automobiles, aviation, business, Christian themes, family, news, product reviews, travel, writing, and more. Samples from his portfolio are available right online.
No comments:
Post a Comment