Smart Shopping During a Retail Price War

Consumers are cutting back on their spending due to the down turn in the global economy. This has resulted in a drop in retail sales. Many businesses have had to come up with innovative ways to encourage people to shop at their stores. One such method is the launch of a price war. A price war is when a business drastically lowers their prices below their competitors’ in an effort to drive consumers to their store. One recent example is Loblaw’s motion to lower their prices to encourage Canadians to shop at their stores.

It may seem like the savings are massive when these price wars are initiated, however consumers should note these sales are often short term and may encourage consumers to purchase items that they do not really need. This defeats the purpose of smart shopping. In an effort to save money, one should continue to implement smart shopping methods (http://www.consolidatedcredit.ca/debt-learning-center/shopping-and-saving.aspx) even during retail price wars.

The following are tips designed to help consumers implement smart shopping practices:

1. Only buy what you need - Don’t buy a product just because it is really cheap. This defeats the purpose of smart shopping because the product may be something that you don’t need or will never use. You should buy products that you really need and are of good quality.

2. Shop around - There are many online retailers that offer great deals on quality brand name goods and services. You can also take advantage of online comparison shopping to make sure you are getting the best deal.

3. Keep track of spending- You should keep a record of your receipts. You will then be able to identify any spending issues and how to budget more effectively. Don’t become an impulse buyer.

4. Do The Research- Look for sales on items that you need. You can check store flyers, online store flyers, and local advertisements in newspapers. If there is a sale approaching, wait for it to come into effect before you buy a product. Make a note to remind you of the impending sale.

5. Look for special offers- Take advantage of special discounts such as “buy one, get one free.” It will allow you to get extra products at a much lower price.

6. Buy in bulk- When items that have a long shelf life such as canned goods are on sale, buy extra so when the price war is over, you will still have a lot of products remaining.

7. Avoid using the Credit Card - Pay for items using cash. This will help you avoid high credit card debt. Only take a certain amount of cash with you when you go shopping so you don’t overspend.

8. Use coupons -Whenever possible, take advantage of coupons, online coupons, and online, mail-in and store rebates.

9. Budget - Hold a family meeting once a week to set a budget. If you give your children an allowance, encourage them to budget.

10. Shop in the local community -You can find great deals at consignment stores, flea markets, and yard sales.

Retail price wars are an excellent opportunity to get a great deal. However, it is important to remember that these wars eventually end. To avoid disappointment when the prices increase, plan ahead by implementing a budget and practicing smart shopping.