Johnson's Randy Allen, retail expert, featured in SmartMoney

8/9/2011 1:15:00 PM

Allen says that with the market slide, there may be some deals to be had, but unlike what followed the 2008 crash, they won't be "crazy deals"

Excerpt from "For spenders, down market has an upside" (SmartMoney, Aug. 9)

After watching the markets fall, it may be hard to consider spending the money for a fancy vacation or a new car. But if history is any guide, the correction of 2011 could lead to some good deals -- for those who still have the stomach for spending.
While consumers who made an impulse purchase before the market upheaval began last week might have buyer's remorse, there may be good news for those who waited: Prices are expected to fall in coming weeks as automakers, retailers and the airlines try to keep consumers from going into hiding. In 2008, that's exactly what happened. In the weeks and months following the market crash that year, airfares fell, cash-back car deals jumped and holiday retail deals reached a whopping 80% off as consumers cut back their spending.

This time around, the deals may not be quite so staggering. The crash in 2008 was "a major economic shock and not one that was anticipated," says Randy Allen, associate dean for The Johnson School at Cornell University. Comparatively, this correction has come as slightly less of a surprise. MORE
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