Clothing retailers are holding off on their crazy, desperate discounts a bit, and plan to discount less aggressively this summer. Why? Women’s Wear Daily reports that it’s not so much that the economy’s improving (it really isn’t) or unemployment has stopped rising (it hasn’t) but Americans need stuff. Retailers anticipate that they will need to mark down, but not at the desperate levels that have characterized the last six months or so.
There’s none of the despair and desperation that characterized the fourth quarter and early 2009 when store traffic screeched to a halt and retailers responded with chaotic promoting. The price cutting now seems more planned and organized and there’s a growing sense coming from the likes of Saks Fifth Avenue, Macy’s and other big retailers that business has bottomed out despite the rising unemployment rate.
Theoretically, at least. Less fun for frugal shoppers, but better for retail profit margins, I guess.