Retailers report dismal December sales (even Walmart)

[Pale Blue Dot]

Source: MSNBC

NEW YORK - December retail sales were so dismal that even mighty Wal-Mart fell short, making it all but certain it was the worst holiday season in four decades.

The malaise cut through practically all areas from kitchen gadget stores to apparel retailers as shoppers, grappling with tightening credit and rising layoffs, focused on smaller purchases and the deepest discounts.

Among the many that reported steep sales declines were Sears Holdings Corp., which operates Kmart and Sears stores, and Limited Brands Inc. But the biggest surprise came from Wal-Mart, the world's largest retailer, which posted sales below Wall Street estimates and cut its fourth-quarter earnings outlook.

"This suggests that the lower income group is feeling the pinch more than we thought and this is clearly reflected in the lower-than-expected numbers at Wal-Mart," said Ken Perkins, president of research company RetailMetrics LLC. "I think it says the economy is in more dire straits than we thought."

Macy's sales at stores opened for more than a year, or same-store sales, dropped 4 percent. Combining November and December, sales fell 7.5 percent, the retailer said. Macy's also announced it was closing 11 stores it said were underperforming at a cost of $65 million to be charged to fourth-quarter results.

Read more: http://www.msnbc.msn.com/id/28556102/

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Walmart's results are going to come as a shock to many (including me.)

[hobbit709]

1. I could have told them that.

The dollar stores were the ones with booming business. When people consider Wallyworld upscale shopping, then you know there's a problem. A friend of mine's wife works at one of the dollar stores and she said she's never been that busy in the 5 years she worked there.

[BR_Parkway]

2. Lower income feeling the pinch the worst - who would have ever

imagined such a thing?

[OneBlueSky]

3. it's really sad when our prosperity is pegged to how much we consume . . .

there has to be a better way of measuring the nation's well being than how much we spend on electronic gizmos, and appliances with built-in obsolesence, and chachkas from China, etc. . . . seems to me some kind of steady state economy that rewards less consumption makes a whole lot more sense in this day and age . . .

not being an economist, I have no idea how such a system might be structured, or even what it would look like . . . I only know that a system based more on quality and less on quantity would be far better for humankind and for the Earth itself . . .

[grilled onions]

4. I Agree

Can a family afford rent or mortgage payment? Do they have the money to feed their family amply with healthy food? Can they pay utitlity bills on time? Is their debt on credit cards low? Do they have anything set asied for a rainy day?
Buying a BArbie,a video game system,a big screen tv etc does not prove a family is holding their own and it never will.

[Javaman]

6. Don't you know? consumerism has replaced patriotism. nt

[xxqqqzme]

9. The emphasis change will have to be national

in scope. It was 'patriotic' during WWII to recycle metals, grow vegetables ans consume less because it was all for the 'war effort'. We need a 'Preserve the Planet' effort.

[Javaman]

10. when sustainable replaces consumerism, give me a call.

that's something I could support.

[gratuitous]

8. There are indeed complex models based on wide-ranging data

But retail sales at the holiday season are an easily graspable measure that even you and I (and a whole lot of other people), not being economists, can readily understand.

The worst retail season in 40 years, huh? Now, what was happening 40 years ago? 1968. Seems there was a very unpopular and futile war going on then, too. A new guy coming to the White House with promises to end the unpopular and futile war. Somehow, though, I have a much better feeling about things this time around.

[Javaman]

5. OH NOSES!!! Even...gasp!!! walmart??????

what will we do, what will we do...

[xchrom]

7. recommend