Although retailers are trying to lure shoppers into their stores with private sales and deep discounts, that activity may not lead to increased revenues this holiday season.
A nationwide survey of consumers, conducted over the Thanksgiving weekend by Deloitte & Touche's Consumer Business Practice division, reported that 71 percent of the respondents would not be spending additional money because of the discounts.
“Holiday shoppers are definitely looking for deals this year,” said Tara Weiner, managing director of Consumer Business Practice, “but discounts aren't necessarily inspiring them to spend more.”
They do, however, seem to be stimulating traffic. “Promotional marketing is causing consumers to shop around,” Weiner noted. “As a result, department and specialty stores have enjoyed increased traffic as shoppers recognize the opportunity for value at these stores as well as at discount retailers.” She cited that 40 percent of respondents who made clothing purchases did so at department stores; only 32 percent bought apparel at discount retailers.
Only 8 percent of the respondents said they had completed their holiday shopping for this year. In fact, 60 percent said they have done only a quarter or less of the shopping they plan to do.