More Shoppers are "Trading Down" to Discount Stores

High gasoline and food prices coupled with an unpredictable housing market is influencing the kind of stores people are shopping in over the holiday season. Many of the high-priced stores are losing customers to discount stores such as Khols and Target and Target and Kohls shoppers are going to Wal-Mart and Meijer as more shoppers "trade down" to the retailers offering cheaper merchandise.

"Customers in a pinch are moving down brands, downshifting in quality, or moving from one store down to another," said Jeff Stoltman, associate professor of marketing at Wayne State University to the Detroit News. "Most shoppers will still pride themselves on finding the best deal, especially this year."

Overall it will be a tough season for many retailers. Many companies projected modest sales gains of four percent or less this season, but are finding even those projections are too high.

See Also: Trading down: Shoppers switch to stores that fit tighter budgets