Retailers fret as shoppers play waiting game

[RamboLiberal]

http://www.post-gazette.com/pg/03350/251757.stm

Despite a recovering economy, the nation's retailers appear to be at the same place they were a year ago, with shoppers again delaying holiday buying until the final stretch in hopes of snagging the deepest discounts.

<snip>

Wal-mart said foot traffic was down for the week ended Friday from a year ago and customers are still buying the lowest priced merchandise. The Little Rock, Ark.-based company cited the trend toward delayed holiday shopping, and the popularity of gift cards, whose sales are recorded only when redeemed, for slow sales.

Target Corp. and Sears, Roebuck and Co. said sales were below forecasts. Sears spokesman Larry Costello hinted that more discounts were coming, "We are going to continue to be competitive with our promotions."

<snip>

With increasing evidence that the economy was rebounding, merchants had high hopes that the season was going to wind up a lot healthier than a year ago.

But sales were mixed over Thanksgiving weekend, the traditional opening of the holiday season, and business has been modest ever since.

[mikehiggins]

1. The market may be rebounding but the people don't have money.

If their jobs haven't closed down already, they mostly know someone who is unemployed, or they fear they may be unemployed themselves before too much longer.

Catching Hussein isn't helping them out in any way.

[cthrumatrix]

14. I read that Sears made a decision to start discounting "ealier this month"

[ze_dscherman]

17. Same situation in Germany

Pre-Christmas sales are catastrophic. And we are much less indebted (per capita personal debt) than U.S. citizens.

When wages are sinking (same here), unemployment rises and the future looks uncertain, giving presents on credit is something one better does not do.

Creating a climate of angst is NOT a good way to initiate a real economic recovery. That's one of the main reasons the neocons are going to fail. Unless they succeed to re-introduce slavery on a broad level.

[smirkymonkey]

22. Good obeservation, I think they ARE trying to

re-introduce slavery on a broad level. That's what made their families rich in the first place.

That famous republicrat shortsightedness is rearing it's ugly head once again. They don't see how their short-term greed is going to affect thier long-term viability. Eventually, it will come back to bite them in their big, white, bloated asses.

[joeunderdog]

30. if all the shoppers have spent their pennies on rent and food...

then none one will be left to buy the widgets. "Walmart Economics" doesn't address demand. People making minimum wage have no disposable income left.

Duh.

[havocmom]

19. Could the market 'rebound' be a bunch of rich guys buying low, and

trying to make everyone think the economy isn't in the outhouse?

Are they so well insulated from what the average worker knows that they think we can be fooled into believing the economy is doing well as we watch our unemployment benifits run out as winter heating oil costs increase?

My guess is that they are that removed from reality.

[smirkymonkey]

23. Yes, yes and yes...

but WE know better.

[rooboy]

2. I guess everybody's donated their tax cut to *'s re-election campaign. n/t

[gmoney]

3. GNP and the Dow are NOT the economy

Indicators, schmindicators... real people are still broke, if they're lucky enough to have a job even, and they're still paying the MasterCard bill from LAST Christmas (at 25.9% APR because that one payment was a day late).

I'm betting more kids will be getting socks and underwear this Christmas than ever before.

On the upside, sales of ivory back scratchers have risen nearly 500%...

[RamboLiberal]

4. Interesting Stat from Wal-Mart showed people busted right before payday

I know we all hate them, but ABC did have an interesting story from them a couple of weeks ago. Wal-Mart has been tracking their daily sales for years. Something started happening last spring they never saw before. Right after the first of the month their sales are strongest (payday), then the sales drop daily, but nearing the 12th to 14th their sales just plummet. Not even staples like food and toothpaste, etc are selling. What it is saying is that people are flat broke right before payday, hence they are living dollar to dollar, one catastrophe away from some real financial problems.

[Marlie]

5. Hi End Merchandise

I did read the high end products are really selling - Prada hand
bags, plazma TV's, and luxury cars are in demand. Guess the upper
1% of the population are having an extra special Christmas thanks
to Bush and his wonderful tax cuts.

[La_Serpiente]

6. I think the tax cuts were all a part of Bush's plan

I mean, OK. Sure, the amount of money people had when they received their tax cuts is more than it was before. However, that is only disposable incomes and that lasts only for short while. Bush was expecting holiday shoppers to blow their refund checks on Christmas shopping so there would be growth in this capitalistic economy. They probably already spent it.

However, have real incomes been rising? have they been neutral of have they been stagnant? I am having trouble find the data, but even if it did rise, I suspect that it wouldn't be by a whole lot.

[PurityOfEssence]

7. What if they're not waiting? What if they're just not going to spend?

It's amazing how everyone can believe the same thing when there's nothing to back it up.

Yes, the market's up. Big whup.

Here's an oxymoron for you: "conventional wisdom".

[izzie]

8. I am hear this year. Cookies are it.

n/t

[Sentath]

32. done shopping (not baking)

At Least a week ago.

And thats just for immediate family (parents and sibling). All others will be getting a mix of cinnamon pecan rye muffins, fruited oatmeal cookies, and white chocolate piña y colada oatmeal cookies

[POed_Ex_Repub]

9. Most people I know are DONE shopping for Xmas

And none of them bought very much.

[JNelson6563]

12. that is the real story

and it won't be breaking for another 2 weeks. ;-)

Julie

[PurityOfEssence]

29. I know I've done mine...

(Okay, a couple of small things left, but virtually everything's done.)

Sorry I haven't written, Julie; I'm in a bad mood on the subject, so I thought I'd let it cool off...

[joeunderdog]

31. Don't blink on Xmas eve...

You'll miss the big news story on the bad holiday for retailers. They won't miss it though. People might be fooled about other people's economics, but they aren't fooled about their own. Ask anyone trying to do business abroad.

[radfringe]

10. they can keep "fretting"

my shopping was done 2 weeks ago... am just waiting for one more gift to arrive

avoided the malls like the plague this year and did everything on-line

[TXDemGal]

11. Same here

I'm like radfringe. I had purchased all I was going to and shipped it to friends/family by Dec. 5th. Not only that, but I tend to buy stuff throughout the year so I'm not looking at an empty bank account come December 25th.

[Nay]

13. We have held to our pledges in this family to not buy presents

this year. We did a few stocking stuffers (candy bars, vitamins, needed daily stuff)and that's it. I hope the whole season goes up in flames, for more than one reason. First, the economy needs to drop dead for Bush to be thrown out. Second, stores and manufacturers need to stop looking at Christmas as their yearly savior. Third, people need to get off the buy-buy-buy merry go round.

[llmart]

20. I agree with NAY

Our family have held to our pledges not to buy much either, and I'm all done having spent much, much less than ever before. And I agree wholeheartedly with all three of your points. The economy needs to keep tanking and bad sales reports and layoffs must be topics out in the forefront so that we have all the ammunition we need to get him out of office!

[qanda]

15. Maybe they are finally feeling our pain

WE DON'T HAVE ANY MONEY TO SHOP WITH!!!!!!

I wish they'd stop being so selfish and start thinking that perhaps people in America are truly hurting. It's not that they don't want to go out and buy all of the retailer's expensive junk-- they are not able, because they don't have any money.

[4dsc]

16. No discounts no shopping

and I have noticed that there are not many dicounts as years past. I haven't shopped yet and don't plan to until at least dec 23 or 24th.

[PaDUer]

21. I really haven't either..

we were to the malls and there really isn't anything worthwhile, the prices are up, small discounts..But have noticed that the retailers haven't ordered large amounts of anything..On Black Friday, people were out, but not as many as the past yrs.

One of our local radio shows did a survey this am, asked the question about how many presents would you be wrapping this yr...I was a bit surprised to hear the results of 40+ gifts, however, they didn't ask what was the range of $ they've spent.

How can people spend $ when they don't have it..I don't even have my meds that I'm supposed to be on and am suffering, and there's nothing I can do.

[KayLaw]

18. My hope

I only hope that the people who do buy a lot of stuff can truly afford it. I find the thought of people who are just charging crap or refinancing their homes and losing equity just to buy junk, really distressing.

[msanger]

24. If you are going to shop online

check out the site in my sig.

[Coventina]

25. Buying "necessities" as gifts

is the trend I've noticed.

If my evidence is not just ancedotal, this would have significant impact.
Here is my example: For Christmas this year I am giving my grandmother a $150 gift certificate to her hair salon. She goes once a week for $12 (you know how old ladies are). So $150 will last her about 3 months. This will free up her $150 in order for her to buy herself a little extra food and other sundries. All in all, not a significant impact to "improving" the economy at all. But it will make a big difference to her.

My whole family is doing things like this for each other this Christmas. No more big toys and gadgets, we're just trying to help each other get along.

[Gin]

27. I noticed that ALL the retailers in our mall are offering discounts

of 40-75% off....those are high numbers....whats left for the after Christmas sales?

[Bandit]

26. "appear to be at the same place they were a year ago,"

And a year ago they were knashing their teeth because sales were waayyy down from year before. Sorry but facts don't tell the same story as the Bush* Administration.

[DS1]

28. I think I might DRAW my gifts this year

Hey, gotta put that Drawing class to some good use :7