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Post from Andrea Woroch.
Consumers tend to make straightforward New Year resolutions: Spend less, save more and pay down debt. This year, it appears retailers want to change just one thing…their bottom line. The tried-and-true methods aren’t working anymore as consumers learn to resist the urge to buy, so merchants are starting their own trends.
According to Bloomberg, consumer spending stalled in December, with a rise of just 0.1 percent, as Americans took advantage of last year’s slight jump in income to restore depleted savings. So what are retailers doing to change this trend? Here are a few examples.
1. JCPenney Ditches Sales
Shoppers have caught onto false savings, in which stores boost prices just before dropping them again for supposed sales. In an announcement last month, JCPenney basically admitted to this practice and said they were launching an everyday-low-prices campaign. For example, jeans that used to retail for $25 — but typically ended up selling for $15 — will just start off at $15.