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Entries in Mega Monday (2)

Tuesday
Dec272011

Will Sales This Weekend Trump 'Mega Monday'?

Brand X Pictures/Thinkstock(NEW YORK) -- If the bargains were less than stellar on the day after Christmas, retailers may offer deeper post-Christmas discounts this weekend to lure shoppers after a strong start to the holiday shopping season.

Britt Beemer, chairman and founder of America's Research Group, which analyzes the retail industry, downplayed the significance of the day after Christmas, or "Mega Monday," as some media stories and retailers have coined it.

Though many Americans had the day off as a federal holiday, even more could have a free day this coming Saturday, "the day when everybody's home," according to Beemer. He predicts more traffic and bigger discounts this weekend. "I think there is a lot out there that can happen, but if consumers don't get the deals they want it will be a whole other issue," he said.

Last year, Beemer said, consumers wanted big discounts but retailers did not offer them until January.  If that happens again this year, deeper discounts could take place during January's clearance sales.

Bill Stone, PNC Asset Management Group's chief investment strategist, said consumer consumption has been an integral part of the U.S. economic recovery since the recession began three years ago.

"We've seen some lift in consumer sentiment, but the after-Christmas period is another important signpost to the mood and health of the consumer," Stone said.

The day after Christmas is usually the second-highest for retailers' revenue, with as much as $8 billion being spent in one day, according to ShopperTrak, which is predicting traffic could increase as much as 60 percent compared with last year, the Indianapolis Star reports.

With gift cards being a large part of holiday giving, this period becomes an even larger retailer focus, Stone said. Beemer claims consumers are most likely going to spend more than the amount on their gift cards. "A lot of those out there are between $20 and $30 and I suspect they get used up probably for a $40 or $45 purchase," he said.

Beemer explains returning purchases or gifts can also work in the favor of retailers if stores have favorable customer service and return policies. "When people return something, there's a 70 percent chance they'll buy something else.  That's with the assumption that when they've got this money they'll see something else they like and the retailer will have a sale."

Copyright 2011 ABC News Radio

Tuesday
Dec272011

'Mega Monday' to Surpass 'Black Friday' Sales?

Sean Gallup/Getty Images(NEW CANAAN, Conn.) -- Could it be that "Mega Monday" surpassed "Black Friday" as one of the busier shopping days of this holiday season?

Customer Growth Partners, which tracks consumer trends, made the bold prediction that retailers stood the chance of making $29 billion the day after Christmas, beating the day after Thanksgiving by $2 billion.

The weather across the country cooperated for the most part and the big chains featured more price breaks than usual in attempting to entice shoppers to spend their Christmas cash and gift cards.

Some discounts ran the gamut from as low as 10 percent to as high as 90 percent off, especially for seasonal items.  Retailers are desperate to get rid of inventory to bring in the spring merchandise so bargains could be eye-popping over the next week.

Consumer Reports says that about 40 percent of consumers will do some shopping between now and the weekend, while about 46 percent are shopped-out and are resisting the lure of deep discounts.

About 30 percent of those heading back to the malls and chains have one intention in mind: returning that ugly sweater or the electronic device they didn't particularly need or want.

Copyright 2011 ABC News Radio







ABC News Radio