What to Buy in September and on Labor Day to Save
Filed Under: Personal Finance
You can’t possibly think about the month of September and subsequent shopping without including a variety of products that are tailor made and discounted to move in the month, but also the bevy of Labor Day Sales retailers are planning to hit the post-summer shopping spree running.
Last year, September saw quite the growth versus its 2017 August predecessor with a 1.6 percent increase in retail sales, although that was up against a 1.7 percent projection, although the final number isn’t anything to turn your nose up at, mostly powered by the aforementioned Labor Day sales.[1]
Those sales were of course backed by the sales on the holiday, but also showed growth in other types of products that aren’t always associated with Labor Day events.
The overall sales last year were up $483.9 billion in September, again citing that 1.6 increase and 4.4 percent annual during this time last year, with total sales July 2017 through September up almost 4 percent versus the 2016 mark.[2]
That same source noted that supply and building material stores were up 2.1 percent versus August, online sales up .5 percent and general merchandise stores (think Target, Wal-Mart, etc.) up .3 percent.
Labor Day provided a boost, none the less, but the consumer on average isn’t afraid to spend on the holiday for the sales, specifically.
Last year, and trends in general, saw about 32 percent of consumers buying from big-box stores (again think Target, Wal-Mart, etc.) and 21 percent shopping online, with another 25 percent hitting all mass merchants, big-box stores and online: most of what was purchased focused on a 28 percent overrun for school supplies, with 22 percent going toward clothing and 18 percent on electronics, with 22 percent on indoor and outdoor furniture sales.[3]
What often is hard to gauge regarding Labor Day is the average amount a consumer spends, which has quite the range for this particular holiday shopping day.
Labor Day also is associated, much like the 4th of July, parties, traveling and other means of spending money, so shopping is paramount but not the only driving force behind how money is spent.
One study showed that clothes (43 percent), school supplies (22 percent) and electronics (12 percent) lead the way with the types of items that are purchased, and more importantly that 57 percent of shoppers will buy something on Labor Day, but with an average price point of $58, although how much of that is factored in between products like laptops and mattresses versus hot dogs and food related to parties. [4]
The one fact about Labor Day, as far as shopping goes, that is mentioned frequently is just how lucrative the sale day can be, with some saying it has the year’s biggest sales, although Black Friday might argue that point.
A study within the last 5 years showed that an average discount of 48.4 percent on Labor day sales, higher than the 41 to 41 percent for Black Friday, and better than the 42 for Memorial Day, 43 for July 4 and 44 percent for New Year’s sales.[5]
If you’re trying to figure out why that is, consider the time of year.
Most retailers are quick to push last year’s model out the door in favor of new, whether that is a mattress model, laptop brand or even the year-end sales push in the car and truck, SUV and luxury vehicle business to “make room for 2019.” That fact alone might be enough to agree and come to the understanding that Labor Day could be the biggest and most important savings day of the year for shoppers.
But like any time of the year, you should be selective in your shopping, and determine what sales, retailers and products are the best.
Here’s a snapshot of this year’s sales, and what to focus on, and in some cases, avoid:
Car Partying: Buying a new, used or lease vehicle makes sense in September
Name your car, name your interest rate, and name your price.
If you’re in the market for a new vehicle or have been for quite some time, make no mistake just how important September is for buying a car.
The 2018 models are taking up some serious floor space on lots across the United States, and dealerships are ready to say so long to this year already.
The average discount in July, for example, is $3,655 but forecasts are showing that September is going to be much more lucrative, given that last July the discounts were around $3,869; one example is a $12,000 to $15,000 discount on Chevy’s Silverado in September, off a sticker price that is closer to $40,000 and up to near $60,000.[6]
The comparison of what Labor Day means to car buying, for example, matched up to Memorial Day is a $7,000 discount on average for the latter with up to $12,000 for the former, at least with the Ford F-150, 2018 version; most of what is sold in September is 2018 models, anyway, to the tune of about 80 percent of the sales.[7]
Most of what you’ll see in September centers on cash back and low annual percentage interest rates on 2018 models.
In most instances, dealers are offering 0 percent for qualified buyers on 60 to 72 months worth of financing, and lease deals that see sub $200 price tags per month.
The popular and affordable Ford Edge illustrates that point with 0 percent financing for the full six year term, and $1,000 back in bonus cash, along with a $229 lease payment.[8]
Deals on 2018 models vary from state to state, but on average you’re looking at around $3,500 in incentives, and 28 percent of MSRP for the likes of Hyundai, FIAT and Chrysler, with Nissan Altima, Toyota Camry and Honda Civic, along with Chevy Impala and Cadillac ATS leading the way on the incentive side.[9]
Electronics Avenue: Deals include discounts at Wal-Mart, Dell and Best Buy for gadgets
If you’re in the market for a new laptop or anything tech or gadget oriented, September is much like car buying in theory.
Laptops are some of the more incentivized items in September, Labor Day sales specifically, especially with companies like Best Buy, Dell and Lenovo leading the way.
Dell is offering a $200 discount on a gaming G315 laptop, with Lenovo’s Yoga 720 marked down $300 and Best Buy going the speaker and bluetooth Google assistant for $75 off its retail price.[10]
Best Buy typically uses Labor Day as its time to shine more so than others as far as big-box retailers go in the electronics field.
That's what they do extremely well, so in addition to the speakers, they’re also offering $200 off select iPhone models, namely the 8 Plus, 8 and iPhone X, in addition to discounts on other Apple products like the Series 3 watch ($75 off) and $125 off the iPad pro with additional discounts for students (another $50).[11]
Appliance and Demand: Refresh home with appliances, furniture, mattresses
Make room for 2019 products is a common theme come September, and appliances and outdoor furniture are no different.
Sears, Sam’s Club, Wal-Mart and Lowe’s are just a few of the heavy hitters in the appliances and furniture game this year on Labor Day.
Sears is offering 40 percent off appliances, same as Lowe’s and Home Depot, and both Target an Wal-Mart have tossed their hats in to the ring with 30 percent off furniture at Target and Wal-Mart discounting patio furniture and outdoor lawn equipment as well.[12]
Outdoor furniture typically is where you’ll see a lot of online moving and shaking, with the likes of Wayfair and Overstock trying to gain ground with not only the door fare but also furniture for inside the house.
Wayfair has outdoor furniture marked down to 65 percent off, with bedding up around 75 percent discount, while Overstock isn’t far behind with various home (indoor and outdoor) items on sale at 70 percent off, plus free shipping.[13]
Let’s not look past the bedding, of course, but what about the mattress you’re restlessly sleeping on at the moment.
Trends suggest that mattresses will be anywhere from 50 percent off at the bare minimum, with some as much as 65 percent off with additional coupons from the likes of Macy’s, 1800Mattress and even Overstock.[14]
Clothes Encounter: Make way for Fall attire as clothing retailers clamor for business
As much as Labor Day will look and feel like appliances, cars and other bigger-ticket items this season, you can’t possibly overlook the clothing deals that the like of Old Navy, Abercrombie, Hollister and Levi are rolling out.
Old Navy isn’t waisting much time with a 50 percent markdown on everything from jeans to sweatshirts, not to mention T shirts and dresses that are becoming expendable as summer comes to a close, along with Hollister offering $25 jeans, 40 percent off at Abercrombie, and 30 percent off when you shop online with Levi.[15]
Most summertime clothing is at least 50 percent off with 75 percent off not being all that uncommon, either.[16]
You’d be hard pressed to find a shopper in any month who isn’t interested in saving money.
A statistic that often shapes how well you save money is $140 per day, which is what the average consumer spends daily.[17]
While some of that is broken down into what goes into your mortgage and car payment, other needs like food, on a daily basis, a good portion can be chalked up to entertainment and apparel, two items that are needs to a degree, but often find themselves being the source of overspending for the masses.
That brings us to Labor Day sales and what to buy in September, and while you are always in the market for a “good deal,” the word “good” is relative to ensuring you’re buying the best possible products and that timing truly is everything.
When you talk about defining your present and future purchases on the past, look no further than cars, appliances (minus fridge), outdoor grills and travel, to a degree, as where you should be putting your money in September.[18]
You can’t overlook clothing, electronics and other ticketed items that are also in the means of being shipped out to make room for new, but like anything else, you should be budgeting for these expenses, not simply shopping to spend money just because you are in the midst of a sales frenzy.
Labor Day sales, and the month of September, is not impervious to poor shopping decisions, and in fact, due to the holiday aspect of the month, the penchant to overspend is there.
But spending wisely is about moderation, preparation and understanding that you shouldn’t sell yourself on every sale price you see.
Keep reading with: Why These After Christmas Sale Items Can't be Ignored