Nation’s retailers post weak January results (Weakest in Jan. in 4 DECADES)

[Pale Blue Dot]

Source: MSNBC

The nation’s retailers delivered more evidence of a stumbling economy Thursday, as merchants reported their weakest January performance in nearly four decades, extending a malaise that has deepened since the holiday shopping season.

The sales figures made it clear that consumers wrestling with high gas and food prices, a slumping housing market, an escalating credit crisis and a weakening job market retrenched further, buying mostly necessities even when redeeming their holiday gift cards. The disappointments cut across all sectors including discounters like Wal-Mart Stores Inc., teen retailers including Pacific Sunwear of California Inc. and mall-based apparel chain Limited Brands Inc. Even affluent shoppers are pulling back, hurting stores like Nordstrom Inc.

“Clearly, this is a reflection of a very difficult environment for the consumer,” said Ken Perkins, president of RetailMetrics LLC, a research company in Swampscott, Mass. “It looks like consumer spending is stalling.”



Read more: http://www.msnbc.msn.com/id/23046118/

---

All of those people who are getting laid off are not even going to be able to find low-paying jobs in retail.

[acmavm]

1. That's very scary because retail is where I went to keep going

until I found something else.

[flashl]

2. Looks like a strong message that the 'consumer society' model is failing. nt

[lovuian]

3. when people are getting 2 % raises ad inflation is 10%

they don't have the wages then you can't buy

Economics 101

So Capitalism is failing and this is Hooverville coming Bush is putting us in a Deep Depression

[Amonester]

33. and don't forget the "sudden" 2x minimum payment on their maxed-out

credit cards accounts...

(+ interest$$$$$$$$$$)

[liberal N proud]

4. So, Now can we call it a recession?

Will the media spin this or report if for what it is?

[stubtoe]

29. I love how the talking heads keep saying "looks like maybe..."

when people here on the ground KNOW it's a recession.

[Stuart G]

30. What recession???

..Does it matter to the leadership in the Republican Party if anyone gets laid off? Or if anyone else cannot afford to get sick? or If anyone loses unemployment insurance. The pols and rich don't need to worry about it. Cause it ain't them.....Ain't it???

[liberalhistorian]

5. The chickens are coming home to roost.

All of the outsourcing, downsizing, and cutting in order to pay the CEO and upper management more and more is causing Americans to buy and be able to afford less and less, which means their profits are now less and less. It's their own damned fault. I'd say good riddance if it didn't mean such hard times and suffering for the rest of us.

[Coyote_Bandit]

6. Oh, well......

Unfortunately, people will be hurt. We need to realize that most of us are co-dependent enablers of this diseased and bankrupt economy.

This train wreck didn't happen overnight. And it will not be fixed overnight. The real question is whether our politicians and citizens have the will and the discipline to make the sacrifices necessary to fix our bankrupt economy.

[geomon666]

7. At least the unemployed will get the extra help in the stimulus bill.

oops.

[ursi]

8. lots of bad economic news these days

[sarcasmo]

9. Their welcome, I do my part by only buying the essentials.

Food, and the terrible suburban essential, gas.

[TrogL]

10. Shoppers shy away

Source: Associated Press

NEW YORK — The nation's retailers delivered more evidence of a stumbling economy Thursday, as merchants reported their weakest January performance in nearly four decades, extending a malaise that has deepened since the holiday shopping season.

...


Thursday's results extended a streak of news that showed more signs of consumer strain. Consumers' spending accounts for two-thirds of economic activity, and their outlays appear to have stalled from an already slowing pace seen over the past year. Wal-Mart noted in its release Thursday that gift card redemptions were below expectations and that customers appear to be holding gift cards longer and “using them more often for food and consumables rather than discretionary purchases.”

...

Thursday's results extended a streak of news that showed more signs of consumer strain. Consumers' spending accounts for two-thirds of economic activity, and their outlays appear to have stalled from an already slowing pace seen over the past year. Wal-Mart noted in its release Thursday that gift card redemptions were below expectations and that customers appear to be holding gift cards longer and “using them more often for food and consumables rather than discretionary purchases.”

Read more: http://www.reportonbusiness.com/servlet/story/RTGAM.20080207.wwalmart0207/BNStory/robNews/home

---

Lots more stores reporting the exact same thing.

My local big box store, The Brick, appears to be having the same problem. I was in there shopping for a desk and took a wander through the electronics section. It was a mess. They had the new stock of 1080p and BlueRay stuff out but the aisles were totally blocked with boxes of last year's models with dust on them.

[ayeshahaqqiqa]

11. Folks around here are spending money only on food

Power costs are soaring, especially for natural gas (up about a third from last year--I don't use it, but I pay my boss's bills so I noticed the jump). People are only buying what they have to have, and that's basically food.

[radfringe]

12. all my "disposable" income

goes for paying bills, gas for the car so I can get to work, food

the corporations and GOP have choked the goose that laid the golden eggs (i.e. middle/working class people)

if people don't have money - they ain't going to buy things

suppose to get a bonus of some sort at work, between that and my little income tax refund - have earmarked that money for brakes and tires on the car

also need new glasses bad, but those will have to wait awhile longer (need tri-focals and most places with deals won't extend it for the trifocals) - 5 years ago when I got the pair I'm wearing now it ran me over $300 just for the lenses, about $50 for the frames.

[onehandle]

13. This was a computer upgrade year for me. Not anymore. nt

[CountAllVotes]

14. what I have noticed ...

I do quite a bit of on-line shopping. One place in particular normally has nice sales this time of the year (up to 30% off). The best they have come up with (no buying here!) is 15% off only on certain items only and the prices are much higher than they were in December.

Luckily, I bought the clothing, etc. I needed from them in December when the pre-Xmas sales were going on. *whew*

This is going to be a rough ride folks. Save what money you can and don't spend on things you do not really need.

I won't be getting any "stimulus check" and neither will my husband who is a retired veteran. :mad: I guess we are too broke to qualify for any "stimulus checks".

[caligirl]

25. we might but nothing for our college age son whose in college.Big bucks.

[Cobalt Violet]

15. Boo Hoo for retail.

They pay the worst wages and then cry when nobody can afford to buy their cheap sweatshop made crap. Boo Frickin' Hoo.

[The Croquist]

16. In the long run this is good

At least people seem to be shying away from additional debt. Debt sucks.

[TrogL]

17. They're going into debt to pay for food

...and using credit cards to pay utility bills.

I've just about maxed out my line of credit paying heating bills.

[xxqqqzme]

18. I have been putting it off but I am going to have to buy

an iron. I have some summer shirts that need a touch up on the collars & button placket. Guess I'll try the buy American site. I really, really don't want another 'Made in China' anything in the house.

[sarcasmo]

19. We make very little here and buy to much crap from every place else.

Economic doom is bound to happen, just plan for it and pay down your debt to zero. Stay out of the debtor prison that is bound to be coming in the next decade.

[TrogL]

20. do NOT pay your mortgage down unnecessarily

I read a long article arguing that a mortgage is healthy and buying it down below what is required accomplishes little. The money can better be put use to today, not 30 years down the road.

[wuushew]

23. I don't agree with that

How would recommend spending the money? Where was this article?

[latebloomer]

27. Don't have the link

but he recommended that, instead of paying extra on your mortgage, you invest the $$.

[FarCenter]

31. Priorities -- pay off credit cards, then loans, then mortgages

Pay off the balances on the highest interest rates first ---
- creditcads,
- loans, such as auto loans,
- loans with tax-deductable interest, such as home equity

at this point, make sure you have 6 months worth of after tax income in savings,

- then pay ahead on the mortgage

The only time that paying ahead on the mortgage is a bad idea is if you need the money in the near future. For example, it would be a better strategy to save money needed for college in a few years, rather than paying ahead on the mortgage and then having to take out a loan later.

[AmandaRuth]

21. what did the freaking repukes think was going to happen when THEY drove up

the price of gas from $1.35 a gallon to over $3.00, and put in a labor department who BRAGS that their mission is to drive down wages? My dog Rosie could have done a better job on the economy.

[KakistocracyHater]

22. when outsourcing is the "in"

thing to do, & your economy's health is determined by new home buying & new car buying-when did they finangle that Enronian accunt trick, the 1980s? A healthy economy should not be dependent on buying cars & trucks, it should be based on our ability to manufacture our own stuff: medicines, electronics, pipes, wrenches, televisions....Ever try to repair your home using only American parts? I recently rewired a rather new "Made in China" lamp, the packaging said Westinghouse, the plug says 'May Feng'.

It's just a massive shift of money from the wage workers to those who own factories & 'generate wealth', they don't work & they certainly don't earn money, they pass laws that redistributes the money, all the while doing their best to make the general populace emotionally identify with the factory owners instead of themselves.

[caligirl]

24. NAFTA , Silicon Valley and the former President who took 3.3 million

from outsourcing supporter from India. I really hope if Hillary gets the nom she undoes this, but I don't see it happening with her.

[Norrin Radd]

26. My "fun" money I spend on books, and I get those from

locally owned bookshops, or from online mom & pops.

[flashl]

28. A little misleading isn't? Wouldn't there have be stores open?

Charming Shoppes Closing 150 Stores; Cutting Expansion Plans by 50%
Lane Bryant parent closing 150 stores
Owners to close 100 Fashion Bugs
Fred’s Closing 75 Stores
Movie Gallery closes 400 more stores
Talbots sees quarterly loss, closing 100 stores

[GliderGuider]

32. Oh no, we're not shopping any more!!!

Is Osama gonna git us now?