Sunday, November 25, 2007

Thanksgiving Is Feast or Famine for Retailers

Recent NYC news broadcasts indicate that retailers know Friday after Thanksgiving is the tipping point to the US economy. No one uses the words recession or depression but this downturn is a real drag.

Retailers want to know are US shoppers willing to buy the great products on the shelves. Are US shoppers able to pay the prices for the great prducts on the shelves?

One TV reporter, two days before Thanksgiving, back-handedly suggested to viewers to use their consumer power. She said that retailers and manufacturers may have to reduce prices and "people may forego a $4.00 Starbucks coffee for something cheaper." Imagine that. The product prices at market entry will be lower? That's basic economic theory: lower prices result in higher sales.

Has it really come to the "Consumer is King Era?" Has that day really come when the working stiffs--including stiffs who earn six digits--don't feel stiffed but sought after? Wow! This is a momentous occasion. The dollar is weaker than the Euro and other foreign currencies such that our European "cousins" are haveing great shopping sprees while on holiday here.

Manufacturers have to do something. They've tapped the global consumer market. They've tapped the global labor market. They've tapped the global financial market. Prices have to go down so more people can afford these truly great products.

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