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Shoppers hunt for deals but inflation makes bargains elusive

91ƵEverything went up so my little nest egg disappeared a whole lot quicker than I expected91Ƶ

Consumers holding out for big deals 91Ƶ and some much-needed relief from soaring costs on just about everything 91Ƶ may be disappointed as they head into the busiest shopping season of the year.

While retailers are advertising sales of 30%, 50% and 70% off everything from TVs to gadgets, many items will still cost more than they did last year because of inflation and finding a true bargain may prove to be a challenge.

From September through October, shoppers paid roughly 18% more for furniture and appliances than they did a year ago, according to a recent major data analysis by analytics company DataWeave, which tracks prices for hundreds of thousands of items across roughly three dozen retailers including Amazon and Target. For toys, they paid roughly 2% more.

Things looked a bit better for consumers shopping for clothing 91Ƶ they paid nearly 5% less compared with last fall, according to DataWeave. Meanwhile, prices held steady for footwear.

91ƵIt91Ƶs just a weird time for everybody to figure out what is the right price, and what is the real price,91Ƶ said Nikki Baird, vice president of strategy of Aptos, a retail technology firm. 91ƵConsumers are really bad at discount math, and retailers are fully aware of it and do everything they can to take advantage of it.91Ƶ

William Wang, 24, who teaches high school math, says he91Ƶs more likely to notice price increases on everyday items 91Ƶ like his quesadilla that now costs $8 at his local deli 91Ƶ than for gifts he91Ƶs going to spend money on once a year.

91ƵI do feel like everything91Ƶs more expensive,91Ƶ said the Brooklyn, New York, resident. 91ƵBut I mainly keep track of it with small items, like food.91Ƶ

The latest government retail sales report shows retail sales rose last month even when adjusting for inflation. That underscores some resiliency among shoppers heading into the Black Friday weekend, the kickoff to the season.

But cracks are forming.

Third-quarter earnings results from major retailers show shoppers aren91Ƶt willing to pay full price and waiting for deals. Kohl91Ƶs, Target and Macy91Ƶs all noted Americans have also slowed their spending in the past few weeks.

It91Ƶs a dramatic change from when shoppers began their holiday items as early as October for fear they wouldn91Ƶt get what they needed amid pandemic-infused clogs in the supply chain. They were also flush with cash from government stimulus money. Retailers were struggling to bring in items so they didn91Ƶt need to discount as much.

Michael Liersch, head of advice and planning at Wells Fargo, said this holiday shopping season, it91Ƶs more likely that things will 91Ƶappear discounted or feel discounted, or it will seem like there are big offers91Ƶ but that between inflation and 91Ƶshrinkflation91Ƶ 91Ƶ when manufacturers quietly shrink package sizes without lowering the price 91Ƶ it91Ƶs often not the case.

That trend played out in a recent spot check by DataWeave of different items. For example, a Cuisinart two-speed blender, listed at $59.99 but discounted at 25%, was available for $44.99 at grocery chain Fred Meyer. But it was still more expensive than last year91Ƶs blender, available for $39.99, after a 20% discount off a lower list price of $49.99.

At Kohl91Ƶs, shoppers paid more for Nunn Bush Baker Street men91Ƶs dressy shoes this past fall than last year when discounts were actually bigger, and the list price was lower. The shoes were available for $79.99 after a nearly 16% price cut from the $95 suggested price; last year, the shoes were available for $59.99 after a 29% discount on a lower list price of $85.

Kevin Brasler, executive editor of Consumers91Ƶ Checkbook, a nonprofit consumer organization, noted its researchers spent 33 weeks starting Feb. 9 tracking sale prices at 25 major retailers. They found most stores91Ƶ sale prices 91Ƶ even those that promote big savings 91Ƶ are bogus discounts, with retailers offering the same 91Ƶsale price91Ƶ more than half the time. In fact, at many retailers, the 91Ƶregular price91Ƶ or 91Ƶlist91Ƶ price listed is seldom, if ever, what shoppers pay, Brasler said.

Still, inflation-battered shoppers like Yoki Hanley are willing to take their chances and hold out for a bargain. So far, she doesn91Ƶt feel like she91Ƶs getting good deals for her eight grandchildren and plans to delay her buying until the last week before Christmas.

91ƵEverything went up so my little nest egg disappeared a whole lot quicker than I expected,91Ƶ said the St. Croix resident. 91ƵI will wait until the last minute. They91Ƶll get it, but it91Ƶs coming late.91Ƶ

91ƵAnne D91Ƶinnocenzio And Cora Lewis, The Associated Press





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