An erratic stock market, increases in oil prices and the never-ending election process all contribute to a general concern about things not being right in the world. Scratch a consumer and you'll hear growing concern about the uncertainty, vulnerability and potential volatility of what's coming in 2001. James Carville had it right. To add insult to injury, the Internet won't make it easy on the traditional storefront retailer. Jupiter Research predicts that 35 million U.S. consumers will purchase gifts online this Christmas compared with 20 million last year.
Fear seems to have brought out the worst in the traditional retailer.
In normal times, it takes a minimum 20 percent discount to lure the customer into the store. This year, retailers are going overboard to give it away. And this year it's being supplanted by an explosion of sales events and big bonus coupon offers, traditionally held in reserve until the third week of December but this year, for the first time, seeing light before and during the Thanksgiving kick-off period. Christmas 2000 will be remembered not only for its rampant discounting, but for the fact that the discounting started so early. For department stores, all this means big trouble.