Sale signs will be as prolific as tinsel and mistletoe this holiday shopping season. Marketers have already begun peppering storefronts and e-mails with markdowns — 50% off, 40% off, 25% off, buy-one-get-one-half-price — joyful music to price-conscious consumers’ ears.
Many merchants have trapped themselves in a cycle of promotions, fueling consumers’ reluctance to pay full price. Inventory levels are evening out, but years of near-constant discounting and a lack of exciting new product lines have pushed shoppers to hold off on purchases longer, until sellers slash prices.
Continue reading “’Tis the season for holiday discounts”
The collapse of one of the world’s largest ocean carriers has marooned more than half a million cargo containers in international waters. As much as $14 billion worth of cargo is stuck in limbo awaiting the fate of bankrupt Hanjin Shipping, with dozens of vessels anchored offshore filled with toys, shoes, computers, couches, dishwashers, etc. Port operators and cargo handlers refuse to unload the ships until they are paid.
Hanjin’s global creditors have impounded at least eight vessels, and about 80 are still at sea until captains are assured ships and cargo won’t be seized. It isn’t clear whether Hanjin’s parent company will be able to secure the $90 million it pledged to ease the carrier’s financial woes, or whether that will be enough to dent Hanjin’s $5.5-billion debt. The company has resorted to selling off ships from its 149-vessel fleet, after signs that the South Korean government won’t bail out its largest ocean carrier.
Continue reading “Billions’ Worth of Merchandise Stranded at Sea”
4% growth in ’16, compared with 4.8% in ’15 (excluding gas)
Feeling more confident about the economy, the job market and their own financial stability, shoppers dialed up spending in June. The third consecutive month of gains marks a strong end to the second quarter of 2016, though challenges remain as retailers grapple with changing industry trends—more online shopping, free shipping demands, etc. Continue reading “Consumers Rev Up Spending”