What have you always wondered about the economy? Tell Us

Retailers hope deals draw in customers

Janet Babin Sep 6, 2010
HTML EMBED:
COPY

Retailers hope deals draw in customers

Janet Babin Sep 6, 2010
HTML EMBED:
COPY

TEXT OF STORY

JEREMY HOBSON: The nation’s retail industry is hoping the holiday today will mean big receipts. It’s been a tepid back-to-school shopping season so far.

And Marketplace’s Janet Babin reports stores are pushing special promotions today in hopes of changing that.


JANET BABIN: Retailers traditionally use the Labor Day weekend to gauge the collective mood of consumers — purchases made now can set the pace for sales until the end of the year.

Marshall Cohen is Chief Retail Analyst at the NPD Group. He says this year many consumers delayed back-to-school buying, so retailers have even more riding on Labor Day holiday sales figures.

MARSHALL COHEN: You know, in some cases back-to-school and this Labor Day weekend can represent almost up to 20-25 percent of their yearly business.

With shoppers holding back in June and July, some of that pent-up demand might be unleashed today, as shoppers look for Labor Day bargains.

Senior Retail Analyst John Morris with BMO Capital Markets says many stores have rolled out more aggressive sales and deals.

JOHN MORRIS: The retailers really know that they’ve got to speak the language of the consumer, which is really all about promotions and markdowns.

That said, Morris says deeper discounts will likely appear in late September and October.

I’m Janet Babin for Marketplace.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.