New Year Brings Price Wars

There's been a great deal of talk about the resurgence of consumer spending, and for good reason. Many retailers went on record to declare this past holiday season the best ever. That doesn't happen unless individuals are feeling more comfortable about their income prospects in 2011.

Having said that, I'd advise marketers to take a deep breath before declaring the good times are back. A soft job market combined with the inability for buyers to access credit means that consumers, while spending more, will still look hard for good bargains before shelling out greenbacks. This is even true for the younger generation that historically has had more disposable income.