Black Friday - Cyber Monday Mixed Bag

Retailers are encouraging shoppers to take advantage of online deals during Cyber Monday.

Purdue Retail Management Professor Richard Feinberg, who has studied holiday spending for three decades, says Cyber Monday is not much different than the rest of the year.

"What we call Cyber Monday has actually never been - maybe once - the largest internet shopping day of the year," he said.  "Over the last four years, the biggest internet shopping day of the year is the Monday before Christmas."

Feinberg projects about $600 billion will be spent this holiday season - 10 percent of that between Black Friday and Cyber Monday.

But, he said he believes it is unlikely holiday sales will top last year.

"Consumers have less money than last year, particularly because of the re-introduction of the two percent payroll tax," said Feinberg.  "That averages to about $1,000 per family.  That's how much more we had last year than this year."

"We still have high unemployment and high underemployment.  Those are the things that drive holiday spending."

This year, Indiana’s legislature voted against applying the seven percent state sales tax to online only retailers such as Amazon.

Feinberg says that takes money away from Indiana, which could be used for higher education and other needs.

"If you ask consumers if they are sensitive to state taxes they'll say 'yes,' but the fact is people are not driving to save that extra percentage.  It is just not a big determinant of consumer spending," he said.  "It certainly hurts the state.  The state is losing tax dollars that they could use to fund higher education.  Of course I have a vested interest in that.  But, it could fund all of education, to fund prisons, and the things that they have to.  So, the state loses dollars."

Amazon and other online only retailers will start collecting state sales tax next year.