So I'm wondering how factors like this will affect the year's bottom line for retailers. I'm guessing that they're going to be able to end the year claiming it was one of the best ever based on gross revenue, but will their profit sheets show it?
Well it seems I might have been onto something.
NEW YORK (Nov. 29) -- Are the nation's retailers giving away the store?
Blockbuster discounts have so far attracted hordes of shoppers this holiday season, which was officially kicked off the day after Thanksgiving. But analysts fear that many retailers - anxious about flagging consumer spending - might have sacrificed too much of their profit by cutting prices.
"We're surprised at how well the traffic numbers looked, especially on Black Friday," said Love Goel, chairman and CEO of Growth Ventures Group, a specialty retail private equity firm.
Robust start to holiday shopping season "When the chickens come home to roost, we'll find out how much of the profit margins were traded off for revenue," Goel said.
Methinks it's a buyer's market this year. I'm okay with that...retailers won't be as happy.
More analysis here.