The result is a deflationary spiral that isn’t going to end, experts tell CNBC.
Retailers are caught in a “deflationary spiral” that forces them to offer the kind of steep discounts expected during the holidays, agree several experts consulted for a report by CNBC that concludes that the price-wars will continue. This in turn creates the expectation of discounting among shoppers. “Everybody loves a value,” said an analyst for PriceWaterhouseCoopers. “How do [retailers] stop? You just can’t stop.”
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