Consumers focusing on bargains

01.12.09
By Sarah Beldo

It seems that price has become the new watchword for the average shopper, who is no longer willing to open their wallet for costly goods.

The recent holiday season saw retailers forced to advertise deep discounts on inventory to lure people into the stores, then continue to reduce prices to keep them buying.

Tracy Mullin, head of the National Retail Federation, has suggested that in the current economy, it has become fashionable to pay less, Reuters reports.

"It's all about price. Factors like quality, selection, store location and customer service are taking a back seat," she explained. "We believe this will continue for the foreseeable future."

Impulsivity seems to have gone out of style as well. Gone are the days in which getting caught up in the moment during a heady day of shopping would inevitably produce credit card debt.

No, today's shoppers are choosing carefully where they spend their money, Mullins said. They are doing research online to compare deals and figure out how to cut costs.

And recent figures from the Federal Reserve suggest that Americans are focusing on borrowing less and paying off credit card debt. Revolving credit fell by around 3.4 percent in November, compared with the same period in 2007.

While most retailers have been suffering from consumers' change in behavior, secondhand and thrift stores are flourishing.

Dave Sullivan of Goodwill Industries told Voice of America News that people have been flocking to the chain of thrift stores to save money.

"The economy has helped us. People are coming in three, four times a week looking for that new product," he said.

Goodwill said that it projects its profits could rise by around 5 percent in 2009.

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Shoppers are determined to get the lowest price