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Early signs on holiday shopping aren't good

Discussion in 'Political Discussion' started by PatriotsReign, Dec 2, 2009.

  1. PatriotsReign

    PatriotsReign Rookie

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    We are now in our second week of "official" holiday shopping and there is a huge shift in consumer habits. They are buying with CASH and are shunning credit cards!

    Personally, I like that trend. but since the average transaction with a credit card is typically 20-40% higher, this does not bode well for retailers.

    Holiday Shoppers Shun Credit Cards Use Cash; Self-Serving Fed Infomercials

    "Only 26 percent of people who shopped over the weekend said they used credit cards for their purchases, according to a poll conducted for Reuters by America's Research Group.

    "That's an amazing shift in consumers' habits," said Britt Beemer, founder of America's Research Group.

    A total of 39 percent said they used cash, while the remaining shoppers used debit cards, the survey showed.

    Consumers shunning credit cards is a bad sign for retailers, since people who buy gifts with a credit card tend to spend anywhere from 20 to 40 percent more on the gift, Beemer said."


    Mish's Global Economic Trend Analysis: Holiday Shoppers Shun Credit Cards Use Cash; Self-Serving Fed Infomercials

    It's still early and habits may change. Sadly, this is a catch-22 for Americans. If the trends continue, it will be a solid sign that the economy is not getting better. And if consumers switch gears and begin to buy on credit, that will be a sign that consumers haven't learned a thing over the past 2 years.
  2. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    I heard earlier today that sales were up last weekend, and many of the big stores were optimistic...
  3. PatriotsReign

    PatriotsReign Rookie

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    Keep in mind that if sales are slightly up vs. last year, that's not much to hang our hopes upon. Last year was God-awful and not a good measuring stick for this year's performance.

    Also, the deals may have been so good on Black-Friday, that consumers spent a large percentage of their holiday budget earlier than last year. If you recall, last year, consumers waited until the very end to spend their money as the deals kept getting better as Christmas neared.
  4. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    I think they need to be optimistic and want to hang on to what seems to be encouraging news...
  5. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    ADP is revising the unemployment numbers up for OCT and the numbers are up for november ~ 169K
  6. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    Last edited: Dec 2, 2009
  7. PatriotsReign

    PatriotsReign Rookie

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    We should TRY to post FACTS and not speculation. Now....let's use common sense, shall we?

    If the unemployment rate is dramatically higher (and it is), do we or should we expect sales to be better? I think we know what common sense would say.

    Of course we all want things to get better. But let us not "HOPE" consumers will spend more than they can afford...that would be very poor for any of us to hope for.

    In the end, the numbers will be whatever they are. Pessimism or optimism have no role or say in the matter. Realism is the only thing we should be focusing upon.
    Last edited: Dec 2, 2009
  8. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    People losing jobs don't buy stuff, see if PR thinks this is a hijack it's his thread.
  9. PatriotsReign

    PatriotsReign Rookie

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    Of course it's not hijacking.

    I think people or some people actually believe that good or bad news drives the economy....THAT IS FALSE.

    This is directly from the link that Darryl provided.....

    "That's why Bernanke and others think that consumers -- while appearing to hold up fairly well now to all the negative stresses -- may turn more cautious in the months ahead, restraining the recovery."

    In all seriousness, we ALL should want consumers to be cautious. We need to learn to stay within our means whatever affect that may have upon our economy or not. It is not Patriotic to spend money you don't have in an effort to help the economy....that is called STUPIDITY!
    Last edited: Dec 2, 2009
  10. ljuneau

    ljuneau Rookie

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    With credit limits being halved and balance rates dramatically rising, I can see why people are shunning the use of credit cards. The sooner people get out of debt, especially cc debt, the better.

    I don't expect holiday numbers to be good, but there are some awesome deals to be found. Have you checked out the prices of new books, CDs, DVDs at Amazon lately? Bought my son the new Star Treck movie on Blu-Ray for only $19.99.
  11. MrSparkle

    MrSparkle Rookie

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  12. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    Thought the mods were in control??? For example you locked a thread yesterday, did you ask the poster???... do not get what the role of the mod is... either there are rules or no rules, not made up ones..
  13. Harry Boy

    Harry Boy Look Up, It's Amazing PatsFans.com Supporter

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    One of my threads was locked, I don't care what they do, my threads are usually full of sh!t anyway, I'm surprised more of them aren't locked.

    Thought Of The Day
    From Behind The President Of The United States Of America Looks Just Like Mickey Mouse.

    Did Bush Really Look Like A Chimp..........:confused:
    Last edited: Dec 2, 2009
  14. PatriotsReign

    PatriotsReign Rookie

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    I had to visit a local mall this afternoon around 3:30pm ....it was a total ghost-town. I don't mean "not many people"...I mean, there was almost no one there.

    This is December 2nd, is it not?
  15. alvinnf

    alvinnf Rookie

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    If this holiday season marks a shift away from plastic, great. We will all be better off as a nation for it. Consumerism has been killing this country for abot 25 yrs now. If people are finally only willing to spend what they have, not what they percieve they have. We will all be better off in the long run for it. People will find a way to fulfill xmas for loved ones, money or no money. The retail sector, has been up against it for a while now anyway.
  16. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    I agree put a dollar figure on family members..i.e. kids $100.00 worth of stuff, grandkids $200.00 worth of stuff... wife stocking stuffers...

    It has been too commercial for too long...
  17. Real World

    Real World Moderator Staff Member

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    I've done all my shopping online so far. Newegg, Amazon, and Monoprice. Always tax free (screw you Patters :p), and almost always free delivery. I bought a new 32" LCD, a Canon camera, some computer components, etc.
  18. sdaniels7114

    sdaniels7114 Rookie

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    I wouldn't put much stock in a survey based on what people self report. Of course people will say they don't splurge with credit cards. Saying so makes them feel irresponsible and stupid, that doesn't mean they don't do it.

    There's a reason why the Neilson people insist on putting a doohickey on people's TVs to accurately record what they watch. If people self reported their TV habits Masterpiece Theater would have 15 times as many viewers and Two and a Half Men would have been canceled long ago.
    Last edited: Dec 2, 2009
  19. PatriotsReign

    PatriotsReign Rookie

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    The fact that credit cards aren't being used has been reported heavily by retailers as well. I was in JC Penney today and asked the cashier if she noticed a lot more cash transactions.

    Not only did she say "YES!", but another cashier came over said she can't believe how many people are paying with cash.

    The truth is, the vast majority of people can't use their CC's. Either the interest rates are too high or they have no credit left.
  20. alvinnf

    alvinnf Rookie

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    Do they not count the online purchases into the retail figure?

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