Retailers Are Cutting Prices Of Retail Merchandise In Preparation Of Holiday Season But Many Say This Is Bad Business

Retail merchandise is getting a price drop by many retailers as the holiday season draws closer. However, many analysts say the repercussions and change of attitude stemming from the recession hasn’t registered with retailers. The argument against cutting the price on retail merchandise is that many Americans affected by the recession are more frugal with their money and are less likely to buy retail merchandise they don’t need. So, with prices being lower and a bleak forecast for the holiday season many feel that retailers are setting themselves up for huge losses over the Christmas holiday.

On the other side of the field are those who think lowering prices on retail merchandise is a brilliant move in the struggling economy. Yes, the income of the average household has taken a hit and people are more careful with their money but Christmas is about giving and few people are looking to act like Scrooge and hold on to every penny. Moreover, the retail merchandise that most retailers seem to be focusing on is toys. Wal-Mart, Toys-R-Us, and Target are looking to lower toy prices and those in favor of these lower prices argue this is a brilliant idea by retail giants. Parents make the most purchases over the Christmas season and if they were unwilling to part with $20 for a single toy, it stands to reason they would part with that money if they could get two or three toys.

This strategy is said to be a failure in the making but arguments for the price cuts on retail merchandise can be persuasive. Retailers may not make as much profit as they had wanted but any profit right now would be phenomenal news. With consumers getting more for their money they may be willing to pay out more than they had originally planned and thereby giving retailers more profit then they would have made had the prices on retail merchandise stayed the same.

As with most arguments both sides have a valid point but it will come down to what the American people do with their money over the holidays. If no one wants to part with money then we will create bad numbers for retailers but certainly no one wants to go in debt or miss a mortgage payment over holiday gifts.

All of this begs the question: what are your plans on spending for the holiday season? Will it be business as usual or will things be leaner this year?

Some in the stat of Florida have spent a little too much money on Christmas shopping over the last few years and they are looking for ways to improve their current financial position.  Getting help through Medicaid is one way to do so.  When looking for Calhoun County Florida Medicaid plans residents must recognize that a major name available is HealthEase of Florida, Inc.  Note that this is note the only option for those who qualify.