Black Friday

[JackAZ]

Brad's deals has a scan of Lowes Black Friday offers. Here's the link:

http://s3.bradsdeals.com/images/bf-2008-lowes.pdf

[xli1]

It's already posted on Lowes website. No good deals this year.

[Uncle Cracker]

No good deals this year.

Seeing that same thing from many other "sneak peeks". Word is that retailers can't afford loss-leaders and other promotions that have them working on a razor-thin margin. If people are not in a mood to buy, the retailers have to make money on what little they do sell.

[cgallery]

Seeing that same thing from many other "sneak peeks". Word is that retailers can't afford loss-leaders and other promotions that have them working on a razor-thin margin. If people are not in a mood to buy, the retailers have to make money on what little they do sell.

Then Wal*Mart is going to eat their breakfast, lunch, and dinner.

People are going to shop where the perceived bargains are. The entire idea behind loss leaders is to get people in the store, where they will often make impulse purchases.

Look at Wal*Mart's most recent results (just released this morning). Their sales are up 7%, their profits are up 10%. So people perceive that Wal*Mart offers THE lowest prices, yet Wal*Mart is doing something to make MORE margin. Hmmm...

The other retailers may have figured out that loss leaders were a great way to attract bargain hunters that really had no intention of making any other purchases. But, to forgo any promotion would be foolish. I'd at least offer door prizes, or hourly "blue-light" type specials, or SOMETHING!

BTW, I'm not arguing with you, I agree that retailers have decided they have to make a profit on what they sell this season. But they seem to have evaluated what didn't work in the past, and have decided to do nothing in the future.

Finally, I think it is interesting that the trade deficit was down (again, just announced this morning). But when you isolate China, our deficit has increased. So retailers probably have been really stocking up for XMAS.

I'm beginning to think that the after-XMAS sales are going to be GREAT this year, due to the behavior of just about every non-Wal*Mart retailer.

[DustyandLefty]

climbing sales

There are still some bargains though...they've got the Werner heavy duty fiberglass 4-foot ladder for half price again this year. I missed buying it last year, and I watched that model go for more than $34 at a local auction last month.

The gear wrenches are nice too.

Dusty and Lefty

[chopnhack]

Bah hum bug, crappy ad!

[Uncle Cracker]

BTW, I'm not arguing with you, I agree that retailers have decided they have to make a profit on what they sell this season. But they seem to have evaluated what didn't work in the past, and have decided to do nothing in the future.

I knew you weren't... I think many who once thought "It's better to have business with no profit, than no business at all..." are now thinking "If I lose money on every sale, how can I make up for that with volume?", or as my neighbor (who owns some sort of gift shop) says... "Why do I want to work my arse off and go broke? I can sit home and drink beer, and accomplish the same thing...".

[LCHIEN]

It's the old "we lose a dollar on each sale, but we'll make it up in volume" mentality.

[Schleeper]

Actually, to the big retail chains, oprating at a loss IS better than not operating at all. Cash flow is their life blood.

There's no mystery as to why Wal*Mart can sell at prices that are perceived to be lower than other retailers, and yet they still maintain a decent profit margin. Simply put, they bludgeon the manufacturers and distributors they buy from.

[Uncle Cracker]

Simply put, they bludgeon the manufacturers and distributors they buy from.

Not to mention their own employees...

[jgscott987]

Wal-Mart

Actually, to the big retail chains, oprating at a loss IS better than not operating at all. Cash flow is their life blood.

There's no mystery as to why Wal*Mart can sell at prices that are perceived to be lower than other retailers, and yet they still maintain a decent profit margin. Simply put, they bludgeon the manufacturers and distributors they buy from.

Years ago I had a friend who manufactured upholstered goods- sofas, chairs, etc. He got a meeting with the Wal-Mart corporate buyers and thought he was going to be in high heaven if he got his product into Wal-Mart stores.

He flew out to Bentonville to meet with the buyers. He was lead into a room where he saw one of his sofas ripped apart all over the floor. The Wal-Mart buyers handed him a sheet showing exactly what the materials cost to build the sofa. Add in a miniscule profit and that is what they were willing to pay him for each sofa sold.

This was back when Wal-Mart was on their big Buy American kick. Now you can't find anything in the store made in the USA.

[Alex Franke]

Newegg has a 42" 720p LCD HDTV for $500 -- is that a pretty good deal for ond of those LCD TV's? (We still have an old fashioned tube TV.)

[Schleeper]

Not to mention their own employees...

Yes, they are pretty good at managing their expenses, too.

If you're implying that they mistreat their associates, they're really no worse than any of their competitors in that regard. The only retailer that you'll find on the Fortune list of 100 best employers is Nordstrom, an upscale department store chain. (Believe it or not, Wal*Mart was on it as recently as 2002.)

[BobSch]

The only retailer that you'll find on the Fortune list of 100 best employers is Nordstrom, an upscale department store chain. (Believe it or not, Wal*Mart was on it as recently as 2002.)

Was that when Sam was still around?

[gordons]

Newegg has a 42" 720p LCD HDTV for $500 -- is that a pretty good deal for ond of those LCD TV's? (We still have an old fashioned tube TV.)

I took a look at this deal and the user reviews. If I didn't already have one this size, I would jump on this deal with one proviso - take the 4 year extended warranty for an extra $99 or so.

Gordon