Buffalo, N.Y. (WBEN) - As Memorial Day ushers in the unofficial start of summer, shoppers across Western New York are getting ready to take advantage of the sales. Or are they?
Burt Flickinger, Managing Director of Strategic Resource Group, says tariffs are quickly reshaping how consumers shop.
"The shelves are already 40 to 80% out of stock. Second, what you're going to see, with 70% of people in the Buffalo Niagara region and Canadians across the border living paycheck to paycheck, you're going to see cautious consumers. So, people browsing, but not buying. They're going to be getting gas and groceries, but since they're having trouble affording rent and power, energy costs out of control, that have gone up 20 to 30% in the last year, people will be looking for sporting goods, not buying. Looking for consumer electronics, not buying. Looking for home goods, not buying. And also looking at clothing and apparel, not buying," stated Flickinger.
With record-high prices straining budgets, Flickinger warns that a significant economic downturn is coming. But there’s hope ahead for those who save and avoid panic buying between Memorial Day and Labor Day.
"We're going to have an economic contraction of unprecedented proportions, worse than over 15 years. The people who have jobs have savings, they'll get the best bargains in history. With a big economic contraction, prices will plunge significantly from food to clothing to consumer electronics to sporting goods to home goods to pet products and everything except restaurants. Because of the economic contraction coming around the corner sometime between Labor Day and New Year's Day and into next year, the record high prices, the highest prices in 70 years, is, our Strategic Resource Group research indicates, all 12 monthly expenditure areas are the highest in history. That will slam into reverse, and the prices will be some of the lowest in recent years by the end of the year till early next year."