Kurt Barnard
Kurt Barnard
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Retailing and consumer spending are a function of a four-letter word -- jobs. And there are no jobs being formed in the United States at the present time. We are in an unfortunate labor climate, one that might be called not at all propitious for retail spending.
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It wasn't surprising really. The August same-store numbers really confirm the trend of slowing retail sales and consumer spending, ... August was the back-to-school that wasn't. August and back-to-school doesn't quite have the importance it did a decade ago, but outside of that make no mistake, consumer spending has slowed down and Americans are tapped out.
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Consumer spending is avoiding the mall-based, high-priced stores and is now drifting rapidly to the discount and low-priced segment.
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High-end stores depend on continued spending from clients that over the past four years have amassed considerable wealth. Sales at upscale stores like Saks and Neiman Marcus are also going strong because the stock market has been very customer friendly to this group.
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All our surveys and research have demonstrated that consumer spending is very slow in growing and contracting. It resists change. We can expect this to last quite a while.
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This has become a very serious disruption in what could otherwise be a much better consumer spending climate,
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Americans, for one reason or another, have not given up on their infatuation with SUVs that guzzle gas by the gallons. But there's only so much money to go around. If people are paying more to drive their cars, they will have less money to spend on other things.
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I expected the spending forecast to be more buoyant. But it could be the case that NRF is curbing their enthusiasm a little now,
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Consumer spending is going to be more restrained than it had been early last year. They will be buying things they need. They will not buy on impulse and will not buy frivolously. They will buy what they need and look for bargains.
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Everybody is worried about a soft landing for the economy and a contraction of consumer spending. And come Christmas it will be far less exciting than a year ago. The high cost at the gas pump is beginning to take its toll and for a lot of families spending an extra $20-to-$25 a month on gasoline means spending that much less on stores.
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Consumers still aren't in a spending mood, ... This year is going to be modestly better. The emphasis is on the word 'modest.'
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Consumer spending had been in decline before this awful tragedy happened. Now comes this additional damper. Considering we are living in state of shock, sorrow and sadness, we really can't expect people to just go out on wild shopping binges.
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The sales clear evidence of modest consumer spending slow down. We expect a decent holiday sales season, but an unspectacular one. The last three have been spectacular, particularly the last one.
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Consumers have been and continue to be on a spending spree and that has benefited most retailers, ... The universe has been very retail friendly.