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Still, the deepest discounting will likely come from retailers that sell electronics, books and toys, where competition from online vendors is fierce. Pricing wars have already erupted, with Walmart going head-to-head with Amazon. The two chopped prices on hot new hard-cover releases to less than $10 apiece for shoppers who preordered books on their websites. Similar price battles have been launched in toys and electronics, with Walmart's chief merchandising officer, John Fleming, proclaiming, "We're going to be the price leader for this holiday season." Best Buy's executive vice president of customer operating groups, Mike...

Author: /time Magazine | Title: Holiday Shopping: This Year It's a Game of Chicken | 11/25/2009 | See Source »

...holiday outlook report released on Monday by AlixPartners LP says 88% of consumers plan to spend the same or less on gifts this year than they did in 2008. The survey, which polled about 3,500 people nationwide in early November, found that 60% of consumers plan to spend less on gifts, and 55% say they'll wait for deep discount sales and specials before opening their pocketbooks. More than half say they plan to buy less-expensive merchandise than a year ago, and 52% say they'll give gifts to fewer people. "This is a fundamental shift," says Bryan...

Author: /time Magazine | Title: Holiday Shopping: This Year It's a Game of Chicken | 11/25/2009 | See Source »

...retailers have planned for this season's frugality, ordering up to 20% less inventory, making them less susceptible to mid-December price-slashing. "You clearly aren't going to see the kind of discounting that you saw last year," says Stephen Sadove, chairman and chief executive of Saks Inc. Wayne Hood, an analyst at BMO Capital Markets, agrees. "We're expecting 50% [markdowns] to be kind of the norm this year vs. maybe 75% last year," he says. (See 10 things to buy during the recession...

Author: /time Magazine | Title: Holiday Shopping: This Year It's a Game of Chicken | 11/25/2009 | See Source »

...Zhus selling so well? First, they cost less than $10, a price that is right for the times. This season, families are looking for small, low-cost collectible toys instead the big-ticket item. "There isn't a hell of a lot of high technology in the Zhu Zhu Pets," says Sean McGowan, a toy-industry analyst at Needham & Co. "That's how they are so damn affordable." (See pictures of people shopping on Black Friday...

Author: /time Magazine | Title: Zhu Zhu Mania: Hamster Toys Are Ruling Christmas | 11/25/2009 | See Source »

...socioeconomic and ethic homogeneity in a university system that already suffers from a lack of racial diversity. Granted, geographical diversity would suffer from tuition hikes aimed at out-of-state students, but there is no good solution to the University of California’s dilemma—only less bad ones...

Author: By The Crimson Staff | Title: The Californian Compromise | 11/25/2009 | See Source »

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