No Price Cuts

The American consumer has become much more saavy about shopping, especially during the holiday season. Retail analysts say that Black Friday sales were strong this year, but then consumers cut back on their spending in the following weeks. How come? They're all waiting for the price cuts and sales. And consumers know the price cuts are going to come, too. On the other side, retailers know that consumers are waiting, but they can't afford to maintain their prices. Eventually (actually, this weekend), the prices will come down. Retailers are just hoping that consumers come in droves and spend wildly. And they also just hope that generating revenues via price cuts will be successful. Interestingly, Apple doesn't have to worry about all this--they offered small discounts on Black Friday, but have never resorted to other sales or discounts during the holiday season to boost sales. And their financial results for the holiday quarter have always been phenomenal. P.S.--Circuit City reported a third-quarter $16 million loss, while Best Buy revenues rose a disappointing 8.7% because of price cuts.