Retailers Report Surprise Drop In November

[OhioChick]

Source: AP

Start Of Holiday Shopping Not Enough To Offset Weak Spending

4:16 pm EST December 3, 2009

NEW YORK -- A decline in sales at the nation's retailers in November after two consecutive months of gains is an ominous warning sign for the holiday shopping season and for an economy in the early stages of a fragile recovery.

Many merchants may be forced to discount more than they planned to get financially strapped holiday shoppers to buy after last weekend's respectable bargain buying surge didn't offset weak spending for the rest of the month.

The 0.3 percent decline, according to one measure, is especially worrisome because it comes on top of a freefall last November as spooked shoppers went into a defensive crouch after the financial meltdown. Analyst had expected a solid gain. Consumer spending accounts for 70 percent of all economic activity.

According to sales results announced Thursday, a diverse group of stores, including department store chains Macy's Inc., Saks Inc., teen merchant Abercrombie & Fitch Co. and discounter Target Corp. posted sharper-than-expected sales declines. Children's Place Stores Inc. was among the biggest disappointments, suffering a steep drop, though Wall Street expected a small gain.


Read more: http://www.newsnet5.com/station/21794814/detail.html

[enlightenment]

1. It was a surprise?

Where do these people keep their brains - on a shelf?

[proudohioan]

8. Yeah, right next to the heavily discounted, Chinese manufactured toy

just oozing with lead........

[DesertDiamond]

16. I've been predicting this due to the Fed ED delay...

A huge number of people have run out of UI and the Fed ED extension is being delayed for "several weeks" while meanwhile the holidays are upon us. I predicted that if this process was not speeded up it would be a disastrous holiday season for the retailers. Hello! People have no money. They're selling their belongings to pay for basics!

However, while Fed ED is being delayed and some unemployed people may not even get any, we seem to have the billions needed to escalate in afghanistan...

[DebbieCDC]

2. Why are they surprised?

People can't pay the rent/mortgage, utilities, buy food, etc. They were going to flood the retailers to buy stuff they don't need/can't afford?

[endless october]

surprise?

outsource American manufacturing jobs to drive the price of goods down, and unemployed people stop buying your goods.

surprise!

[LisaM]

5. Plus the stuff you can buy is just crap

I am willing to spend money, but the amount of foreign junk in the stores is unreal. Seriously, there is not much I want to buy.

[MARALE]

6. I am with you on that

I am so tired of having the stuff I buy fall apart and really there is not a lot I need or want. I just do not need all that much.

Asked my teen kids what they want this year, one wants socks and the other wants food. easy enough!

[4_TN_TITANS]

19. "Asked my teen kids what they want this year"

Mine still haven't produced the x-mas lists I asked them to. They are well aware of the state of the economy and don't want us to spend much on them. One silver lining to this recession is that it's going to produce another generation of Americans who are financially and reuse/recycle concious.

[Nay]

10. Crap! Ain't that the truth! For nearly 4 years I've been looking for

simple, easy-care clothing for work. The stuff on the racks is so ugly that I simply will not buy it. The colors, the patterns -- did somebody puke on my blouse?? Oh, wait, that's the PATTERN....

Anyway, I've shopped at Goodwill and have been having better success there.

Don't get me started on the toy I got my grandchild, which FELL APART on the first day. I took that sucker back, and I save receipts so I can march that stuff right back with a complaint.

[unabelladonna]

18. merchandise does suck

even at saks. the garish colors and crappy materials are nauseating. i buy what i need...stick to basic black and neutral and cottons and silks. there are some terrific catalogs where you can buy interesting, quality clothes. j peterman (yep, that j peterman), peruvian connection (not drugs), sundance (robert redford's), cynthia ashby (made in america), jcrew (decent quality). just buy less, you're allowed to wear the same thing twice in a week.

[Romulox]

11. Concur. A lot of the merchandize seems low quality this year... nt

[Warpy]

3. People aren't stupid

and they know the Christmas sales will be good ones this year as retailers cut everything to the bone to lure customers in and try to reduce their inventory by January.

If retailers are surprised by that, they're simply not paying attention and probably won't be in business much longer.

[annabanana]

4. No one is surprised except the rich. . . n/t

[DontTreadOnMe]

7. Surprise! Surprise!

[proudohioan]

9. ".......financially strapped holiday shoppers to buy......."

Need I comment on the intelligence displayed here? HELLO!!!!! What is it about a "free market" capitalist worshipping society that doesn't get it when their employers create jobs that pay Wal-Mart wages and those employees just can't seem to scrape up enough to overspend for Christmas??? And what is it about the credit card companies, who rape their customers at every chance they get, then cut off their credit lines, then wonder why none of them are spending what they don't have???? C'mon, it's CHRISTMAS!!!! What's the matter, don't people love their kids anymore?:sarcasm:

[Algorem]

12. they should create some more service jobs so people can buy their junk.

or they could service me.whatever.

when they said service jobs did they mean everyone's going to have to join the service?

[Mithreal]

13. They were trying to avoid the term debt slave, service is so much nicer

[TwixVoy]

14. Retailers report surprise drop in November

Source: AP

NEW YORK -- A decline in sales at the nation's retailers in November after two consecutive months of gains is an ominous warning sign for the holiday shopping season and for an economy in the early stages of a fragile recovery.

Economists say such depressed spending could persist for several years amid stubbornly high unemployment -- now at 10.2 percent. The Commerce Department reported last week that over the 12 months ending in October, wages and salaries, the most important component of incomes, fell 2.9 percent.

Target said strong sales during Thanksgiving weekend were not enough to offset weak business the rest of the month, sending sales in stores open at least a year down 1.5 percent. The drop was bigger than the 0.5 percent drop analysts were expecting.


Read more: http://finance.yahoo.com/news/Retailers-report-surprise-apf-2179320510.html?x=0&.v=10

---

When I went in to talk to my former co-workers at Target after black Friday they told me it was worse than last year. (last year was worst black friday we ever had) The company continues to make long term cost cutting measures. Everyone I used to work with that I talked to was depressed. The mood is not good.

[Devil_Fish]

15. I'm not supprized. I'm buying necesitys only, and still behind on my bills. NT

[unabelladonna]

17. how could anyone be surprised?

if people don't have jobs, there's no money.