Back-to-School Standoff Risks Retail Profit Margins as U.S. Consumers Wait

[marmar]

Aug. 16 (Bloomberg) -- The back-to-school shopping season is off to a slow start as retailers and consumers wait to see who will blink first.

Americans are looking for more discounts, and retailers are trying to hold out in an effort to protect profit margins, said Craig Johnson, president of the New Canaan, Connecticut-based consulting firm Customer Growth Partners. Department stores J.C. Penney Co. and Kohl’s Corp. lowered their profit forecasts last week.

“No one buys on the first markdown,” said Johnson. “Only chumps pay full price. We haven’t seen the desperation fire sales yet.”

As a result, the back-to-school shopping marathon, the second-largest shopping season in the U.S. after the end- of-year holidays, could be pushed deep into September, said Eric Beder, an analyst at New York-based Brean Murray Carret & Co.

Retailers ordered more merchandise when the U.S. economy was rebounding earlier this year, he said. Now they will have to clear out their summer stock. The question is when to cut prices and by how much, he said.

“There are a lot of retailers losing sleep,” Beder said. ..........(more)

The complete piece is at: http://noir.bloomberg.com/apps/news?pid=20601109&sid=ac6Pi0zxa3cc&pos=14

[elleng]

1. How would this work, exactly,pushed deep into September, said Eric Beder

Last time I checked, SCHOOLS OPENING and ABOUT TO OPEN, RIGHT NOW!

p.s., States having back to school tax holidays now!

[daleanime]

3. Means that the stock will still be on the floors...

in late September, along with Halloween candy and Thanksgivings Day supplies.:crazy:

[notadmblnd]

2. it's the retailers that are going to blink, because the consumers don't have any money.