U.S. Retailers Missing Estimates by Most in 13 Years

[Ichingcarpenter]

U.S. retailers’ first-quarter earnings are trailing analysts’ estimates by the widest margin in 13 years after bad weather and weak spending by lower-income consumers intensified competition.

Chains are missing projections by an average of 3.1 percent, with 87 retailers, or 70 percent of those tracked, having reported, researcher Retail Metrics Inc. said in a statement today. That’s the worst performance relative to estimates since the fourth quarter of 2000, when they missed by 3.3 percent. Over the long term, chains typically beat by 3 percent, the firm said.

Extreme winter weather through February and March forced store closings and stifled sales, Swampscott, Massachusetts-based Retail Metrics said. Lower- and moderate-income consumers had little discretionary spending power, and chains also faced price competition from e-commerce sites.


http://www.bloomberg.com/news/2014-05-23/u-s-retailers-missing-estimates-by-most-in-13-years.html

Another reason to raise the minimum wage

[Laelth]

1. When the working class has no money to spend, our economy tanks.

Surprise, surprise! Supply-side economics, once again, is proven to be complete bunk.

-Laelth

[JNelson6563]

12. Why can't they understand this basic principle?

[hobbit709]

2. Even that reactionary old bastard Henry Ford knew that, the modern CEO's have forgotten that.

[Enthusiast]

3. They will have to enact strict austerity measures.

That will help.

[Ichingcarpenter]

4. Cut food stamps and unemployment insurance

would be a good step ........
and then increase the defense budget.

[Enthusiast]

5. Then they will scratch their heads and wonder why the economy took a nosedive.

[ctsnowman]

8. That's the plan

along with gutting social security so we can protect Ukraine or the country of the month.

[TBF]

13. "protect the natural gas in Ukraine" -

there, fixed it for you!

[jwirr]

23. Which to my knowledge have never worked in any country they were used in. However, I am talking

about worked for all the people. I suspect it has worked to make the rich richer in most of those countries. WAKE UP America.

[watoos]

6. Look across the country

Republican governors are giving tax breaks to corporations, then their revenues decline by millions, then they claim they don't have the money to fund teacher and public sector pensions, or to fix roads and bridges. Texas is letting paved roads go to gravel. It's a matter of priorities, how governors choose to spend tax payer money, and Republican governors are choosing to give it to the rich.
The poor Republican workers still fall for that old talking point, "we need to create a climate so that corporations will create jobs," translation; corporation x gave me money to get elected, and now I must return the favor.

[workinclasszero]

7. Its the weather, yeah thats it!

Speaking for myself, I haven't had a raise in 5 years. And of course the price of necessities like food, gas and rent never stop going up.

I had to go in the hospital a few years ago and because of the high deducible that I couldn't pay immediately I was thrown into two, count em, two collection agencies! The deducible doubled since then! I can only go to the Doctor if I'm dieing basically.

I'm a vet so I went to the VA who told me I...make to much money for them to help me?!

We cut out cable TV/satellite about 3 years ago. Went with crap pre-paid/monthly phones. Eat lots of ramen, white bread, peanut butter, w/e is on sale. Yeah and there's millions of people out there way worse off than me and mine in this Randian/capitalist nightmare from walmart horror show.

But lets blame it on the weather, yeah that will work!

[ctsnowman]

9. I got 1%

raise and my check went down by about 50 cents. lol Add to that my insurance went to an 80-20 and higher deductible and premiums and I have gone further down for over a decade now.

Peace.

[fasttense]

15. The VA tried that "you make too much money" crap on me too.

I kept applying and complaining and showing up. I'm a 20 year retiree and have a 30% disability. I now get most of my health care through the VA. Don't give up. Keep trying.

[Ichingcarpenter]

24. Good thing the banks were bailed out

so they could weather the storm.

[Alkene]

10. Time for another round of lay-offs.

And maybe outsource more jobs.

Hey, maybe bring your-kid-to-work days could replace public schooling, and bond the family unit through shared drudgery!

Just spit-ballin' here.

[grilled onions]

11. Why Are They Surprised?

The youth and young adults can't find a job. The 30 something can't find a job to support their new family, rent, daycare,food etc. Those creeping towards fifty fear every day may be ax day. They have not been able to save thanks to the CEO "wage cutters" so they fear buying anything outside of essentials. Those in their "golden years" often find themselves helping to house, support kids, grand kids. They find little extra cash to buy extra seat covers for that yacht. So while the CEO's pad their wallets, their portfolios and that extra vacation "shack" in the Bahamas the rest of the country is pondering what tomorrow will bring.

[jwirr]

22. Very good desciption of life here on the bottom. I suggest that one of the ways that we fight them

is to refuse to buy anything that is not absolutely needed. I do not mean go without food. I have a list of item to buy next month - there are two items that I can live without. If each of us scans our list like that we will make an impact. Over time we will make a big impact.

I also suggest we select a local store or one that we would like to see prosper over the others and be a loyal customer.

For instance I would like to repaint my room and get some throw rugs for the kids to play on. That is a like not a need. Time to make them see what raygunomics means to the business person once they have destroyed their own customers.

[japple]

14. I have noticed that there are lots of thrift stores opening up in the area

where I live. I've been shopping at thrift store for 30 years, and it's great to have so many new places. Yard sales, garage sales, and thrifts are the way to go. I do buy new underwear, though.

[DeSwiss]

16. K&R

''The primary aim of modern warfare is to use up the products of the machine without raising the general standard of living.'' ~George Orwell, 1984

- Viewed from Orwell's point of view, things are moving along according to script. Almost with book, chapter and verse accuracy.

[jwirr]

17. Grocery stores deal in food stamps daily and yet they did not think cutting food stamps would cut

their profits? When that safety net is cut it has a "trickle up" effect on spending. I used to words trickle up as a joke because the joke is on them.

[malaise]

18. Duh!

Neo-liberalism does not work

[Triana]

19. "Lower- and moderate-income consumers had little discretionary spending power"

The middle class is gutted. The economy collapses. It's not rocket science.

[cantbeserious]

20. Greed - The Economic Grim Reaper - Too Much For The 1% - Too Little For The 99%

eom

[Snarkoleptic]

21. The Walmart and Target chickens are coming home to roost.

I make less than half what I made in 2004, but still refuse to shop at the worst of the worst retailers.