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After Christmas sales start earlier with huge discounts

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After Christmas sales at retailers like Amazon, Best Buy, Macy’s, Walmart, and Sears are starting earlier than expected, according to a Dec. 24 CNBC report.

With the shopping season moving slower than expected and inventory stacking up, consumers should expect bigger after-Christmas sales before Dec. 26.

“Promotions have already crept into the irrational zone — north of 50% off,” says Brian Sozzi, CEO of Belus Capital Advisors. “The season so far was a full-on Debbie Downer. After Christmas a black plague of promotions will sweep throughout the malls and stores — 50, 60, 70% off.”

Online retail giant has already set up its “2013 After-Christmas Sale” page with offers like 70% off select clothing, shoes, watches and jewelry. Old Navy led the way on Sunday with its “After Holiday Sale,” giving customers discounts of up to 75%.

Chris Christopher, the director of consumer economics at HIS Global Insight predicts that 2013 will have the weakest sales growth since 2009. “Overall, the holiday retail sales season is not the best,” he observes. “Online is up tremendously from where it was five years ago, but everyone is hurting on the margins because of the discounting and the free shipping.”

According to Time Magazine, most retailers rolled out their “After-Christmas Sales” by Dec. 23.

Retailers like Crate and Barrel, Jo-Ann and J.C. Penney have essentially already begun “after Christmas” discounting of 60% off or more, with an emphasis of getting rid of seasonal items like Christmas décor.



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