Can A Strong Holiday Season Save Our Favorite Retailers From Bankruptcy?

by MR Magazine Staff

Struggling brick-and-mortar retailers could get some breathing room this holiday season — but will shopper confidence be enough to stave off bankruptcies in the beleaguered retail sector? So far this season, strategic discounting has encouraged shoppers to buy everything from sweaters to speakers, and analysts are optimistic that stores will be able to avoid the kind of sweeping price cuts that have eroded profits in prior years. “I think retailers all walked away from the weekend saying they can breathe a sigh of relief,” said Marshal Cohen, chief industry analyst at The NPD Group. “The good news is, when you have a good Black Friday, retailers aren’t pressed to have to get into promotion mode too soon.” The years following the Great Recession conditioned consumers to expect discounts, and retailers initially sacrificed their profit margins just to move merchandise. In the ensuing years, they have fine-tuned their inventory management and pricing strategies, and have learned how to contend with the greater pricing transparency that e-commerce players like Amazon have introduced. See more at NBC News.