Consumer Spending and Housing

Are you spending less on Christmas presents this year? Experts partly blame the housing market for slow retail sales this holiday season. But could it be something else?

You can’t turn on the TV without hearing about how the housing market will affect consumer spending during the holiday season. The other day I read an article in USA Today discussing the plummeting housing market. Experts predict that this is not the end. We should see home prices continue to spiral downward. Because we feel like our homes aren't worth as much, does that make us want to spend less at the mall? I know I am pinching pennies this year. Not because I feel any poorer, but because the deals are so great out there! Why should I pay full price for something I can get for free. Victoria’s Secret was giving away free slippers with a pajama purchase. I knew I needed a new pair of PJ’s, and slippers would make a great gift for someone.(They’re very cute by the way.) So I went ahead and paid full price, $39 for the pajamas. Then two days later they went on sale for $29.50. You know that sinking feeling you get when you’ve just been robbed! So I call up Victoria’s Secret. The nice lady tells me "no problem," they’ll credit me the difference. Apparently, if the item you bought goes on sale within three weeks after you purchased it, you’ll receive the sale price.

A lot of merchants I’m finding are bending over backwards for customers this holiday season. Is it because of the bleak retail forecast, or are retailers finally getting the picture? Treat your customers right and they’ll come back! Maybe there is a slight upside to the gloom and doom of the housing market, and ever increasing gas prices. Whatever, I’ll take the bargains.