6 Reasons Why the Dismal Retail Season Was Good for Us
You've probably heard the bad news: Early numbers show that December same-store sales fell about 1 percent from last year, despite steep discounts and bargain-hunting shoppers.
But what you may have missed is the good news. Really. Consumers got deals and finally learned to save. Retailers were forced to learn what it will take to survive a recession. And some even emerged as shining stars.
Here are six reasons why the so-called dismal holiday season actually is cause for cheer:
Shoppers got great deals. Low prices, especially on consumer electronics, made Blu-ray DVD players and LCD televisions two of the most popular gifts this season. Dan de Grandpre, chief executive of Dealnews.com, says that at one point he saw a 42-inch LCD television going for $500. Even luxury retailers such as Saks Fifth Avenue and Nordstrom were taking up to 40 percent off and offering free shipping. That meant those looking to upgrade their home entertainment center or redo their wardrobe were able to do so without breaking the bank.
It set us up for a stellar '09 season. Retail success is all relative. Each month or quarter, companies report how much they sold relative to the same period from the previous year. This year's low numbers mean next year -- the 2009 holiday season -- will have an easy time impressing analysts. Sure, it's sort of like gaining weight just so you can say you lost it, but it still means we've got some good news coming our way.
The slow season led to some incredible travel deals. Chris McGinnis, editor of the Best Western blog You Must Be Trippin', says two areas are particularly ripe for steals: Hawaii and cruises. "Hawaii has not been this cheap in a long time," he says. Round-trip tickets are as low as $300 from the West Coast and $500 from the Midwest. McGinnis will head out to Hawaii later this month, and he says he will get a car for just $33 a day and a hip hotel for just $112 a night. He estimates that he'll spend just $600 to $700 for a four-day getaway -- about a quarter of what it would have cost last winter. (He'll be using frequent-flier miles for the airfare.)