Shoppers insisting on lower prices

12.29.08
By Nicholas Storie

The holiday season's significant discounts may be setting a precedent regarding what consumers expect to pay in the future, according to a retail expert.

Dan Butler of the National Retail Federation told USA Today that many people have become so reluctant to spend that they are "voting with their dollars" and will only fork out for discount merchandise.

The recent SpendingPulse survey from MasterCard revealed dismal sales for the holiday season, with people seemingly more concerned with paying off credit card debt and saving for the future than racking up purchases on plastic.

Butler suggested that people have become pickier than ever about the prices they are willing to pay.

Stores hoping to lure consumers with post-Christmas bargains continue to discount items and advertise big sales.

Many retailers are still stuck with an excess inventory that they ordered before the current financial crisis escalated.

That means that if you do have cash to spare, now could be the time to see how low the prices can go - and take advantage of the opportunity to snap up bargains.

"This year, the retailers are really feeling the pain, but the pain to the retailer is the ultimate benefit to the customer," industry analyst Marshal Cohen told ABC News.

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