Huge Sales on ... Everything

From clothing to cars, prices are being cut like never before.

ByABC News
October 24, 2008, 3:33 PM

March 7, 2009— -- Trey Shores, 36, recently scored a fantastic deal. The Tokyo-based consultant scooped up an in-season Helmut Lang leather jacket in the city's Ginza district for 50% off the regular price. What was an out-of-reach $2,000 became a more reasonable $1,000 "just like that," says Shores. "I'm quite proud of [it]."

He's certainly not the only consumer benefiting from the financial hardship of retailers. From clothing to travel to cars, companies are being forced to reduce prices at a never-before-seen clip as the global economy continues to shrink.

Click here to learn more about surprising sales at our partner site, Forbes.com.

In the U.S., consumer spending in the fourth quarter of 2008--which accounts for more than two-thirds of domestic economic activity--decreased by 4.3%, according to the Commerce Department. That's the worst decline since the second quarter of 1980. And while retail store sales were up 1% in January 2009 to $344.6 billion when compared with December 2008, and overall consumer spending was up 0.6% during the same period, the government has attributed those increases to massive markdowns on inventory. For many retailers, bargaining with consumers is the only option. In other words, it's a buyer's market.

Kathryn Finney, editor of the the Budget Fashionista, a Web site that caters to fashion-savvy shoppers on a budget, says that right now shoppers are likely to find more deals with fewer restrictions. For example, coupons from department stores typically excluded products from the beauty counter, such as perfume or makeup. Not anymore.

Finney recently used a Saks friends and family coupon to buy her favorite Giorgio Armani Hydro Glow foundation at 15% off $57, which knocked the price down to $48.45 (before tax). "I buy most of my makeup at Target, but I splurge on this foundation because of the quality," says Finney. "This is the first time I've ever purchased it at a discount."

And while shoppers are the true winners in this discount war, some retailers are benefiting as well. Take discounted designer goods Web site Bluefly.com. The site is currently featuring several coveted Hermès handbags at up to 40%. You won't find the brand's popular Kelly or Birkin bags, but you will find a gray herringbone twill "Jumping" tote, discounted by 20% to $1,480. Recently, a black pebble leather Bolide was been marked down by 49% from $8,400 to $4,300 (the piece sold out soon thereafter).