Holiday Sales: Will Discounts Make All the Difference?

While trying to stay ahead of competitors (and the economy), retail stores are offering huge discounts to keep themselves in the black. Shoppers are desperately taking advantage of these markdowns while still clinging to savings to beat out the recession. But will these steep discounts really do all that much to help retailers stay in the black?

All these discounts certainly have enticed a few more shoppers to spend a little more money, but does that mean that retailers will be able to turn around and come out ahead this season? The answer is no. Steep discounts may entices more buyers, but that does not exactly mean any profit in the end. These discounts will more than likely cancel out any profits the retailer could have made. They will essentially be selling to try and just come out even. Any retailer that just comes out even in a time like this is worth a second look. However, for investing purposes, stay away from retailers until the economy shows any promising signs of recovery. Until then, be patient and keep your money close.