Bushworld = Crappy Christmas Sales (but the economy is STRONG!)

[FormerRepublican]

Despite the spin, the word is getting out that Christmas sales aren't all they're cracked up to be:

"Shoppers Crowd Stores but Spend Modestly

NEW YORK - The 2005 holiday shopping season got off to only a modest start over the Thanksgiving weekend as consumers responded initially to aggressive discounting and then retreated.

"There was a lot of hype, a lot of promotions and lot of people, but the results were on the lukewarm side," said Michael P. Niemira, chief economist at the International Council of Shopping Centers, estimating that the weekend's sales results were down from a year ago. He said heavy markdowns forced retailers to sell more goods in order to meet sales targets.

Analysts said there was heavy shopper traffic early Friday when stores opened even earlier than usual for the day after Thanksgiving, offering deep, deep discounts. When the early-bird specials were over, consumers lost their enthusiasm.

"If you give Americans a bargain, they will get up whatever time to take advantage of it. But I don't think this weekend turned out to be as big as retailers hoped," said C. Britt Beemer, chairman of America's Research Group, based in Charleston, S.C."

http://tinyurl.com/9qmzq

Something tells me that all the BushCo spin about the expanding economy is just more propaganda on US soil. Smaller middle class, growing numbers of poor, higher credit card payments, less disposable income... Well, where the heck are folks supposed to get $$$ to spend on Christmas?

[warrens]

1. Sales were actually down 1 percent from a year ago

I think they're going to stay down, too. Retailers will have to discount more heavily than they have in years, and shoppers will stay home til they see massive sales, probably a week before Xmas, as retailers panic. The winter has been warm so far in most places, but consumers know they're going to pay $400 or more extra for heat this winter. That can put a big hole in most people's budget.

[LiberalEsto]

2. The crowds are at the discount stores

The lines at Ross were huge today, and the store was pretty well picked clean of gift items, and it's not even December. I went to look for gloves and couldn't find any left.

Big Lots and Value City are the same way. I'm sure WalMart is doing a booming business but you won't get me anywhere near those skunks.

That tells you a lot about the state of the economy.

[unblock]

3. as real estate prices flatten, consumerism will suffer

so much of the economy is shopping, and so much of the shopping is paid for with home equity.

now that interest rates are reverting to historical norms, housing is due for an extended period of stagnancy, meaning people will have to actually start coming up with money to pay for their excesses.

look for people to shift from buying to paying down their debt, and economizing in the process.

bad news for retailers. this is likely to be the last decent christmas shopping season for quite some time.

[spindrifter]

4. NPR did a segment on real

estate sales. The industry people they were talking to are in denial. They, of course, don't want to forecast gloom, as the McMansion builders are making billions as long as there are buyers. But it does look like the "correction" may have begun.