Skip to comments.Retail sales fizzle. Are consumers tapped out?
Posted on 07/05/2012 1:23:30 PM PDT by Signalman
The annual Macy's 4th of July fireworks show in New York City provided the usual oohs and ahhs. But the pyrotechnics were quickly replaced by a dud of a June sales report from Macy's Thursday morning.
Macy's (M) said that sales at stores open at least a year, the most widely watched measure of health in retailing, were up just 1.2% from a year ago. Analysts were expecting so-called same-store sales growth of 2.3% according to Briefing.com.
But the tone of Macy's CEO Terry Lundgren makes the sales miss even more alarming. In a press release Thursday, Lundgren described the macroeconomic environment as "stagnant at best" and noted that tourists were spending less in New York and other cities.
That's obviously not a good sign. Macy's, because of its flagship store in midtown Manhattan, is a great barometer of global consumer sentiment. When the euro was significantly stronger than it was in years past, the store was deluged by European tourists looking to capitalize on the weaker dollar -- especially around the holidays. (For a look at how strong the world's economy used to be, check out this Black Friday piece I did five years ago on the eve of the Great Recession.)
Now, it would be one thing if sluggish sales could be written off as something unique to the company. But it's not. Target (TGT), Costco (COST), Kohl's (KSS) and The Gap (GPS) also reported same-store sales that were below forecasts.
(Excerpt) Read more at buzz.money.cnn.com ...
I’m still busy not spending and not working (tax slaving) until The W0n is gone.
The stores and malls around where I live seem to be doing just fine. Jam packed restaurants.
Yes. Most are tapped out. High gas, food and energy prices are burying them. If there is anything left they are putting it away in the knowledge that they are about to be hit with huge tax increases and ever soaring prices.
All that and the fear that it will be them to lose their jobs tomorrow for the very reasons mentioned above.
They aren’t here. We were at a Chili’s the other night, and it was almost empty. No wonder! Prices have gone up and potrion sizes have shrunk. We have decided to eat at home as much as possible, and spend less in general. Inflation is really getting to us.
I don’t spend any more than necessary, and have done all I can to make sure the highest percentage of pre-tax dollars are stashed from my paychecks. (Health Flex Fund, 401K, etc.)
My vegetable garden is slightly bigger than normal, too. ;)
I’ve gone Galt. My problem is that my wife and kids haven’t.
I’ve gone (mostly) Galt too. My income is now down 95% voluntarily since 2006’s elections that elevated Pelosi, and my spending is down as low as is comfortable and a little below that level. I’ll become a consumer again on January 20, 2013, if we inaugurate a real American as president. Otherwise, I’ll load up on emergency supplies and withdraw even more from the economy. I will not contribute to economic growth that is used by socialists as a tool to destroy our country.
We purchase as little as possible.
Even grow much of our own food.
I refuse to feed the corrupt government more taxes than absolutely necessary.
We do not purchase anything unless we absolutely need it.
I refuse to fund hundreds of thousands of government employee gold plated pensions, 1 cent over what is absolutely necessary to survive.
We fix and or repair all of our own stuff.
I suggest others do the same.
Going to restaurants is an absolute costly rip off. Even the fast food slop joints have increased their prices.
About 2 years ago, we just stopped going to them.
Plus, restaurants hire illegals by the millions...They wont be getting any of our money.
Obama can just forgive everyone’s Visa card balance when he forgives all the student loans. Problem solved.
“The stores and malls around where I live seem to be doing just fine. Jam packed restaurants.”
In Virginia we are an aberration. Government largesse, including Military Spending has insulated us from the reality I see most other places I travel. We’ll catch up with the rest of the country in 6 months to a year. Hopefully the rest of the country will not have plumbed new lows by then.
I’m pretty sure that buying stuff, marked down 80% at store closings, isn’t showing up in the “retail sales” figures....
maybe some of US are boycotting you, MACY's because you support GAY MARRIAGE!!
I have set myself a budget of $1500 a month . This month I was $450 under budget. I consider that pretty good considering I have to pay $465 a month for health insurance. Next month should be even better because I am getting rid of cable tv. Who actually watches that mindless junk on tv anyway?
We’re approaching 4 years since booting cable TV...no local reception either. Best decision we ever made. Why support the enemy? We do get movies from Netflix through the mail.
That's true. I don't like eating out so I can count on one hand how many restaurants I've been to this year. That said, we just got home from taking a friend to eat out who had done a good deed for us. We were the only ones in the place. When we were leaving, a family and a man came in so that's not going to keep them in business.
If it's not at our podunk grocery store, I don't buy it. The only thing we've bought in months was material to do some diy home repairs so that isn't enough to keep anyone in business. The garden keeps us in some veggies and I put up two batches of pickles last night. Various birthdays are coming up and it's going to be slim pickings because we can't afford it. Last Christmas, it was homemade gifts and they can expect more of the same this year.
Don't tell anyone what you are not doing. ;-)
Where is John Galt ?
We know who he is, but Where is he ?
John Galt can crash the Obama re-election Campaign, by shrinking the Economy, ever so slightly, while Obama desperately tries to “Stimulate” the same.
Advantage, John Galt.