Down Trend In Consumer Electronics Starts A Tough Holiday Season.
Business is lousy in retail. The consumer has cut back on spending. Price cuts and promotions are abounding. Pretty much every retailer saw a major shift to the Internet. More consumers used mobile phones to purchase Christmas gifts. As a result, long lines, heavy traffic, and out-of-stock disappointments were avoided. Conversely, shopping in stores was less of a hassle and more pleasurable for anyone that bothered to go to a store. The National Retail Federation, using their magic wand, determined that 154 million people shopped this year over the Thanksgiving weekend, compared to 151 million people last year. That would be an almost 2% increase. However, with uncanny accuracy, the NRF says that average ticket was down from $299.60 to $289.19 a 3% drop. Supporting the NRF theory, a study by Nathan Rigby of One Click Retail registered a -17% drop in video games, -42% in home entertainment, -38% in shoe sales, and surprisingly -23% in wireless. On the other hand, OCR says toys were up 26%, home 30%, kitchen 46%, and home improvement a whopping 105%. These findings should mean Home Depot, Lowe’s and others saw a healthy boost to their sales while the consumer electronic retailers may not be so happy. (Source: Forbes)