This year’s events we should have seen coming, the conditions that exist today have been made by the actions taken in the past which built up to our current events. The newly appointed “Super Deficit” Committee has not been cooperative to solving the deficit problem. The high unemployment rates are still here although may be lower but only because less people were to receive unemployment compensation, this due to short-term seasonal employment in retail stores and compensation running out for many. These developments have made the public weary of retail sales, the retailers expecting income from these sales will find only short-term benefits. The events of “Black Friday” show clearly that although people want to buy, they are also concerned about the economic conditions as well. When it happens, the majority will not be making major sales increase this year; those sales are already over and far too soon to help the retailers.
The accompanying video was sent by a friend from the town of Guthrie, Oklahoma, it shows the local Wal-Marts at the beginning of it “Black Friday sale. This is actually Thursday night, knowing already that sales would be lower the retailers have continued to push Christmas sales every further out each year. This indicates the desperation that major retailers have at gaining more customers, the push to promote without any real benefits presented. One indicator the retailers knowing that to make more sales they need increasing time-spans to promote a stress for buying more, to impress upon the customers the need to consume more. But I have checked the local stores and although there was a large rush at the beginning of these sales it has since cooled off. The sales rush was over that first night, expected sales from further promotions will be hard to gain. The funds outlaid for promotion will not be so easily returned with these beginning sales only; the retailers will then need to find other means to insure profits are gained.
The major items of electronics, toys and other expenses are priced to meet the needs of the production, but not the abilities of those who need them. At distribution, these items are priced high, combined with the high unemployment and low wages the mass public gains these days there is little they can buy. Thus the high priced items were sold fast as people looked for deals they could afford but also cost them in savings not easily returned. The customers will have little to spend in the coming months; retailers will have to stress them even more to keep the sales up. Knowing this many people are putting off buying large or expensive items, they are seeking more confidence in markets and governmental actions before being so willing to spend. The major points of this will be seen in the governmental “Super Deficit” committee actions. The net results of this interaction will be seen in lower than expected retail returns for this time of year and the high cost for promotions of the same. Seasonal help will not be needed and as result further economic cuts will be in order. The net results will be less economic growth for the local communities to compensate for the lack of leadership. This will cause the economic system to react even more; investors will loss more confidence in markets. Going into the next year will be a low point in economic status for the entire world.
The seasonal retailers’ sales are looked at heavily as a means to gauge the income and economic status of the local communities. Expectations of high sales means a recover or expansion within these local economies, it is for that reason emphasizes is place on achieving high sales. But propaganda of such sales will not in themselves present the sales; this must accompany the desires of governmental offices to support the economic conditions needed to obtain these sales. The words and promises of governmental offices are just as important in providing insight and directions the public takes in relation to their own lives. This “Super Deficit” Committee has not taken any direction to solve its own problems, the public’s inference than is things will get worse. This lack of confidence from and about those in charge is seen as a warning of future setbacks. The expectations than of “Black Friday” should be reconsidered, the public’s awareness has grown this year. To gain an economic recover, the leadership will have to do more of its job and less for itself in the coming months.
Contact: Michael Pulse [email protected] Author of: The Truth of Things
Website: www.truth-things.biz CEO of Stone Rose LLC.