The brass at Wal-Mart is probably salivating at this. Darwin is smiling in his grave.
2008 was a doozy, but don’t expect 2009 to get any better:
“At the end of the day, people are buying far less stuff. They are buying what they need as opposed to what they want,” she said.
This spending slump, which started in early 2008, has already claimed a number of retail casualties. Prominent national chains such as Linens ‘n Things, Steve & Barry’s, KB Toys, Whitehall Jewelers and Shoe Pavilion have gone out of business.
Still others such as No. 2 electronics seller Circuit City are barely surviving, hoping to find a lifeline while in bankruptcy protection.
But after suffering one of the worst year-end shopping seasons in decades - November and December combined can account for half of merchants’ annual profits and sales - experts predict that many more chains will disappear.
Read more. How bad was the retail figures? Check the chart:
‘I don’t see any reason for retailers to be rejoicing at all,” said Britt Beemer, chairman and founder of America’s Research Group.
Among the early sales tallies, new estimates from MasterCard Inc.’s SpendingPulse Data service indicated that total store sales fell about 3% in November and December combined.
That would be significantly worse than the original forecast from the National Retail Federation (NRF), which anticipated a 2.2% gain for the period.
That line about consumers buying what they need versus buying what they want is probably the most accurate observation and captures the shifting sentiment as American consumers start the process of moving from a debt-fueled spending mode to one of savings and manufacturing.
Digg this Blog
Share on Facebook
WatchMojo on Twitter
WatchMojo on YouTube
Add to Favorites
WatchMojo Newsletter
