Sunday, October 30, 2011

Black Friday Predictions: What Should You Buy?

From toys to tablet computers, which items will be steals on Black Friday and which ones are worth waiting for until the holidays are over.

Apparel
After demand for a limited-edition Missoni line brought Target to its knees in September, it's clear that shoppers are showing a preference for inexpensive and accessible fashion.
On Black Friday, that could mean a virtual stampede over discounts for items like $50 cashmere sweaters or $10 jeans at department stores and discount retailers alike.

"Expect an explosion of sales," said Candace Corlett, president of WSL Strategic Retail, a retail consultancy. "Department stores are not only competing with each other but with discount retailers," she explained.

And for consumers, that means there will be significant markdowns across the board — making Black Friday a good time to stock up on their favorites.

Since there has yet to be a "must-have" item to emerge this year, retailers may have to mark down their stock even further after Black Friday to keep consumers shopping, said Tom Julian, president of Tom Julian Group, a retail consultancy in New York. "Every mall store will be 30% off, but they will be 40% to 60% off later in the season."

But if there is an item you are particularly yearning for, don't hold off too long. In anticipation of slower sales, retailers have been limiting their inventory and may sell out of some items well before the holiday arrives. "They will run out of colors and sizes and on some things," Corlett added. So if it's that purple sweater you want, be prepared to head out on the day after Thanksgiving.

Computers And Tablets
The bargain-basement laptop has historically been the ultimate Black Friday deal. But this year, the tablet has stolen its thunder.

The tablet may be the hottest item this year, but finding deals won't be so easy. The popular iPad2's $499 price tag won't waiver — even on Black Friday — but it does leave some room for lower-priced models to make their mark.

Although Amazon's Kindle Fire has a lot of buzz, it's still pricey at $199, and don't expect that to change on Black Friday either.
But if you are willing to forgo a color screen and apps, the entry-level Kindle and lower-priced
Android tablets are really where the deals are, noted Steve Baker, an analyst with market research firm NPD Group. The Kindle 3G will likely be less than $100, while generic Android tablets could even be much less.

"We wouldn't be surprised to see a smaller 7-inch Android tablet selling for around $49 this year," added Olson.

And for those who are looking for a good old laptop or desktop, expect some rock-bottom deals. Olson predicts big-box retailers like Best Buy and Wal-Mart will offer an all-in-one desktop and a standard laptop with 15-inch to 16-inch widescreen LCD display and a dual-core processor for as little as $200.

High-definition televisions
Discounted HDTVs are usually one of the most coveted Black Friday scores, but since so many families upgraded their old standard-definition tubes for flat-screens already, retailers have notched slower sales this year, regardless of the deal.

"It's shaping up to be a muted season for TVs in particular," said Paul Gagnon, director of TV research at research firm DisplaySearch.

To bring buyers back, retailers are hoping some aggressive price drops will do the trick. "We fully expect to see the cheapest 42-inch LCD HDTVs in the $249 to $299 range this year," said Brad Olson, founder of Gottadeal.com.

Look for even better deals on smaller TVs, too, which retailers hope will entice some shoppers to upgrade the set in their bedroom or den instead, added Brad Wilson, founder of BradsDeals.com, a site that showcases daily deals on the web.

Gagnon predicts prices will be 10% to 20% lower than last year, but it may not stop there. "Towards the end of Christmas you'll see deeper discounting," he said.


Toys
After Toys R Us drew massive crowds last year with doorbuster deals like a $50 gift card with the purchase of an XBox 360, this year's toy deals are likely to fall short of expectations, said Jim Silver, editor in chief of TimetoPlayMag.com. Last year, "They were giving away money and that's not going to happen to the same extent," he said.

This time, retailers have reeled in their inventories to avoid those severe price cuts. That means even the season's hottest toys, like the LeapPad Explorer, will also likely be in short supply. "Have your kids make a list," Silver advised. "If they want a hot toy, buy it early."

Not only will those gizmos not be discounted later in the season, they could be sold out altogether.

Video game consoles
With no new "it" gaming console to drive sales, expect lower prices on older models this year, said Shawn DuBravac, chief economist and director of research of the Consumer Electronics Association.
New consoles tend to be released in five-year cycles, he explained, and we are currently in the middle of a lull.

A recent price cut on the Nintendo 3DS to $169.99 from $249.99 will likely mean particularly deep discounts on the older models like the DSi and DS Lite, noted NPD's Baker. Baker says the very best deals will be bundles on one of the older models with one or two games for $79 to $99.

Wii consoles will also be cheaper come Black Friday, as retailers aim to clear their shelves to make room for the new Wii U slated for next year. "Expect deals such as a Wii bundled with a $50 gift card for $149 this holiday season," said Gottadeal.com's Olson.


*Shop till your asses drop!

That's the retailers motto!

However, is it yours? Think about it.

I've neve seen it miss. Each year black Friday comes around with deals and more deals to temp folks into buying more than what they should. 

It's the American way right? 

Wrong!

What we should be doing is thinking about how we can stretch a dollor instead of buying things that we don't need, especially toys that kids will open and play with two or three times.

Remember it's all about the benjamins more now than ever, which means you the consumer need to think about if you want to give all of yours away to the big bad corporations.*



Diva's Nation
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