Consumers Cheer Sales as Retailers Chase Profits
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowMore than 122 million consumers are planning to hop online today as part of Cyber Monday. Purdue University retail expert Richard Feinberg is predicting holiday retail sales will increase between two and four percent this year, including double-digit growth online, but says that won’t necessarily translate into profitability for retailers who face continued pricing pressure from online competition. Feinberg says profitability challenges could continue to re-shape the retail landscape. "We’re going to see many retailers really hurt by low profitability or no profitability, even though they have sales," said Feinberg.
In an interview on Inside INdiana Business Television, Feinberg said retailers face the problem of passing along cost increases to consumers.
He added more store closures could be on the way. Feinberg says online sales should increase by 10 to 15 percent over last year, but still represent a relatively small piece of overall holiday spending.
The Purdue retail management professor says about half of all consumers will use the internet in making buying decisions and a similar number will seek out the best price online before buying in a store.
In an interview on Inside INdiana Business Television, Feinberg said retailers face the problem of passing along cost increases to consumers.