The Independent Voice of Southern Methodist University Since 1915

The Daily Campus

The Daily Campus

The Independent Voice of Southern Methodist University Since 1915

The Daily Campus

The Independent Voice of Southern Methodist University Since 1915

The Daily Campus

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U.S. retailers are on sale

Every year on the day after Thanksgiving, eager shoppers put on their shopping-war helmets and go to battle, looking for the best deals on Black Friday.

This year, however, the number of consumers might be fewer, causing the aptly labeled Black Friday to be a little bit gloomier.

Black Friday gets its name from the large amounts of consumers who come out after Thanksgiving Day for the sales that help retailers turn a profit before the end of the year.

This event receives a lot of coverage from the business press because it is a very good indicator of the country’s economic strength for the immediate future. Consumer spending accounts for nearly 70 percent of economic output in the U.S, and a weak showing of consumers on Black Friday is a very pessimistic sign that the economy will mend quickly.

The National Retail Federation believes that holiday-season sales this season will decrease by 1 percent compared to previous years. Another troubling sign comes from a study done by America’s Research Group, which said 70 percent of the 1000 consumers polled are looking for at least a 50 percent discount before opening their wallets.

Retailers’ profit margins are withering away as they struggle to get consumers in the door. Wal-Mart stores cautioned their investors about a “difficult sales environment and price deflation.”

For an economy on the mend, consumers are going to be vital in the recovery process. It is very troubling that continued retail discounts and early Black Friday sales have not lured as many customers in the doors as expected. It could mean there is a bumpy ride ahead for an already frail economy.

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