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by Anna Munhin Nov 24, 2022 News
Jupiter Meta gets a new branding, Metaverse and Web3 advisory, ET BrandEquity
<p>Representative image (iStock)</p>
Representative image (iStock)
Consumers holding out for big deals - and some much-needed relief from soaring costs on just about everything - may be disappointed as they head into the busiest shopping season of the year.

While retailers are advertising sales of 30 per cent, 50 per cent and 70 per cent off everything from TVs to gadgets, many items will still cost more than they did last year because of inflation.

According to a recent major data analysis by DataWeave, shoppers paid 18 per cent more for furniture and appliances in the third quarter of this year than they did in the same period last year. They paid a little more for toys.

Things looked a bit better for consumers shopping for clothing - they paid nearly 5 per cent less compared with last fall, according to DataWeave. Meanwhile, prices held steady for footwear.

"It's a weird time for everyone to figure out what is the right price, and what is the real price," said the vice president of strategy of Aptos. Retailers are aware of the fact that consumers are bad at discount math and do everything they can to take advantage of it.

William Wang, who teaches high school math, says he's more likely to notice price increases on everyday items than on gifts, because he's going to spend his money on more things.

"I do feel like everything's more expensive," said the Brooklyn, New York, resident. "But I mainly keep track of it with small items, like food."

Retail sales rose even when adjusting for inflation. The Black Friday weekend is the beginning of the season.

But cracks are forming. Third-quarter earnings results from major retailers show shoppers aren't willing to pay full price and waiting for deals. Kohl's, Target and Macy's all noted Americans have also slowed their spending in the past few weeks.

It's a drastic change from last year's holiday period, when shoppers began their holiday items as early as October for fear that they wouldn't get what they needed due to the swine flu outbreak. They had a lot of cash from the government. Retailers didn't need to discount as much because they were having a hard time bringing in items.

According to Michael Liersch, head of advice and planning at Wells Fargo, it is more likely that things will appear discounted or feel discounted, or it will seem like there are big offers.

In a recent spot check, that trend played out. A two-speed blender, listed at $59.99 but discounted at 25 per cent, was available at Fred Meyer. It was more expensive than last year's blender after a 20 per cent discount, but it was still cheaper than last year's model.

At Kohl's, shoppers paid more for Nunn Bush Baker Street men's dressy shoes this past fall than last year when discounts were actually bigger, and the list price was lower. The shoes were available for $79.99 after a nearly 16 per cent price cut from the $95 suggested price; last year, the shoes were available for $59.99 after a 29 per cent discount on a lower list price of $85.

Kevin Brasler is the executive editor of Consumers' Checkbook. Retailers offer the same "sale price" more than half the time and most stores' sale prices are fake. Brasler said that the "regular price" or "list price" is rarely what shoppers pay.

Yoki Hanley is willing to hold out for a bargain even though inflation is high. She doesn't feel like she's getting good deals for her eight grandsons, so she's going to wait until the last week before Christmas to buy them.

"Everything went up so my little nest egg disappeared a whole lot quicker than I expected," said the St. Croix resident. "I will wait until the last minute. They'll get it, but it's coming late."

The story was published on Nov 24, 2022.