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Deflation watch: Consumers anticipate price cuts, wait to buy

By Nexchange
Capital Markets

Halloween is almost here -- which means one thing:  Time to start thinking about Christmas sales, the make-or-break time of year for retailers.

The early drumbeat is worrisome. Sunday, Business Insider reviewed all the ways that retailers are playing to the consumers who figure that they can bide their time and buy once the markdowns come rolling in. Some sellers just simply cut to the chase and begin with low prices: Everlane promises high quality, well-priced items compared to department stores. The online retailer along with e-tailer Oliver Cabell share the gory details of their costs and how they price things so much more fairly than those big mean retailers who actually have brick and mortar overhead.

The Consumer Price Index tells the story: Apparel prices are down 1.4% from September 2014. Car prices are also down 1.7%.  The huge drop in energy prices -- down 18.4% -- doesn't seem to be encouraging consumers to go and spend their savings. What? Why would they if prices are likely to drop further?
Photo: Eli Christman

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