February 07, 2013
Ronald Friedman, Co-Leader, Retail/Consumer Products Industry Group, Quoted in the Associated Press Article "The Devil is in the Deals"
Americans shopped the winter clearance racks in January, resulting in strong sales during the month for retailers. But spending is expected to slow as the deals dry up heading into the spring, and Americans digest rising gas prices and a 2 percent payroll tax hike that started in January.
Noelle Perillo, 34, was certainly lured in by deals last month. She says that she spent a total of $100 in January on deeply discounted holiday ornaments, home items and clothes for her toddler son. But she also says her spending may slow in the months ahead.
Going forward, Ron Friedman, head of the retail and consumer products group at accounting firm Marcum LLP, said stores will likely have to do more discounting to get shoppers to buy.
"My gut is they'll be forced to go on sale sooner," he said.