Buy Local efforts kick into high gear for holidays

Inflation makes bargains elusive

NEW YORK — Consumers holding out for big deals — and some much-needed relief from soaring costs on just about everything — 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 — they paid nearly 5% less compared with last fall, according to DataWeave. Meanwhile, prices held steady for footwear.

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

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

“I do feel like everything’s more expensive,” said the Brooklyn, New York, resident. “But I mainly keep track of it with small items, like food.”

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 aren't willing to pay full price and waiting for deals. Kohl's, Target and Macy's all noted Americans have also slowed their spending in the past few weeks.

It’s a dramatic change from last year’s holiday period, when shoppers began their holiday items as early as October for fear they wouldn’t 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 didn’t need to discount as much.

— Associated Press