Faltering Economy May Bring HD Deals

Nov 6, 2008  •  Post A Comment

With the economy in flux and consumers concerned about the future, electronics stores are going to have to resort to combination deals and unusual pricing plans as they try to sell high-definition television sets and other electronics this holiday season.
Consumers are becoming more conservative with their discretionary spending, which will force retailers to offer bargains in order to lure in shoppers—even at a risk to their bottom line, said Paul Gagnon, DisplaySearch’s director of North America TV market research.
“To combat [customer hesitance], retailers are expected to pull out all the stops this holiday season,” he said.
Mr. Gagnon said stores will begin lowering HDTV prices and offering bundled packages of HDTV sets and Blu-ray players. Retailers may even resort to having in-store credit or a pay-with-your-tax-return option in order to hit target sales.
“Keeping shopper traffic high for the holiday season will be a priority for both retailers and TV manufacturers,” Mr. Gagnon said.
Stores such as Costco and Wal-Mart could succeed better than others, DisplaySearch said. Consumers concerned about the costs of taking multiple trips to various stores might use these big-box stores as their one-stop shopping arena.
The upside? DisplaySearch said consumers will take advantage of the lower prices by purchasing bigger sets with more features, grabbing the deals while the grabbing is good.


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