American Republic Online

Black Friday has come and gone.  Typically, this day sets the tone for the rest of the holiday season: the make or break time for retailers.  Deals, deals, deals.  Your editor was even drawn in himself: much to his own chagrin, he is now the owner of a cell phone.  People can now reach me no matter where I am. Sigh.  The deal was too good, though, which left me wondering.  You see, dear reader, I spent the weekend visiting family, and stayed in a hotel nest to a mall's parking lot.  As I watched the frenzy unfold, I had the same concerns many other have had before me: how is this good for retailers?  True, loss-leading has proven highly effective in the past, but if holiday sales are strong and prices much lower, what will that do for profits?  Indeed, Wal-Mart is expecting a decline in sales for November.  The housing market is cooling down, and many (including your editor) believe the refinancing boom as been one of the main drivers of the economy the past few years.  Now, consumers have less disposable cash, and retailers must lure them in with ever-better deals.  This will be an interesting season to watch.