Saturday, November 29, 2008

Crisis Drives US Online Retailers To Slash Prices

Here is a very interesting article on the New York Times.

The financial crisis is affecting household's budgets for Christmas and this starting holidays season. Due to this factor, retailers needs to cut their prices in order first to stay competitive, but also to convince consumers to keep consuming, despite the decrease of purchasing power.

If this statement is true for any retailers, it is way more evident on the web. Online retailers are waging price wars. That also means that some smaller retailers might not be able to stay competitive against this massive discount effort, and thus to disappear.

Maybe actually this crisis might be profitable to some consumers since it will contribute to the drop of some goods prices.