Memorial Day sales even bigger this year with some retailers offering up to 50% off furniture

Memorial Day weekend sales are set to go even higher than prior years and last all summer long, analysts say.

This comes as retailers are getting stuck with more inventory than they anticipated as inflation hovers at 40-year high and financially-strapped consumers are spending more money on necessities such as groceries, gas, and housing, said Zach Warring, equity analyst at CFRA Research.

Macy's, Best Buy, Target, and Walmart highlighted in their recent earnings calls that consumers aren't purchasing nearly as much clothing, furniture, houseware, and electronics as expected, hurting retailers' profitability.

That's happening to retailers "across the board," said Katherine Cullen, the National Retail Federation's senior director of industry and consumer insights.

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This is why they "need to offer promotions to lower those inventories," Warring said.

Memorial Day furniture sales

Despite  inventory challenges, retailers "really aren't reinventing the wheel when it comes to their Memorial Day sale this year," said Kristin McGrath, a shopping and trends expert at RetailMeNot.

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Memorial Day sales are concentrated in home goods, appliances, and outdoor furniture, which will remain the case this year, she added.

But it's "unique" to see some retailers including Target and Walmart offering as much as 50% off all patio furniture.

"I would typically expect this huge variety 50% discount to be what we'd see at an end of the season clearance," she said.

Memorial Day clothing sales

McGrath said that retailers offer discounts on spring clothing over Memorial Day sales events. The discounts she's seen so far are on par with prior years.

But Warring said he's expecting "much higher" than usual discounts on apparel, electronics, and home goods this Memorial Day since retailers' inventory pileups are concentrated in those areas.

McGrath added that retailers may wait until Amazon's annual Prime Day, which is set to take place in July, to offer bigger discounts on clothing and electronics which typically go on sale then, she said.

In past years, Target, Best Buy, and Walmart offered sales events timed around Prime Day to compete with the e-commerce giant.

How to know if you're getting a good deal

Even with discounts, items likely are more expensive thanks to inflation levels.

So, it's pointless to compare this year's prices to those last year, said Simon Blanchard, an associate professor at Georgetown University’s McDonough School of Business who studies consumers’ financial decision-making.

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Instead, consider whether you think the price of the good you're interested in could go even higher. In which case consider the current price a good deal and go for it, he said.

You could also save more money if you use a retailer's app to purchase goods or join their loyalty program, which is often free said Cullen of NRF. That will sometimes give you early access to deals.

Elisabeth Buchwald is a personal finance and markets correspondent for USA TODAY. You can follow her on Twitter @BuchElisabeth and sign up for our Daily Money newsletter here

This article originally appeared on USA TODAY: Memorial Day sales 2022: discounts on furniture, mattresses, and more