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SUNDAY, NOVEMBER 22, 2009
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7

Lousy Retail Sales Will Delay Recovery

Recession isn't over as far as consumers are concerned

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(Newser) – If the recession is indeed waning, nobody told consumers. Retailers of every kind reported lousy sales for the quarter ended Aug. 1, the Wall Street Journal reports. Target’s same-store sales fell 6.2%, Home Depot’s dropped 9.1% and Saks’ plummeted a whopping 15.5%. And with unemployment, stagnant wages, and tight credit squeezing shoppers, executives don’t expect to see improvement until next spring.

Retailers managed to survive the sales dip by slashing inventories and reining in expenses. Investors backed those plays, sending Target shares up 7.6% and Saks’ up 6.9%, even though both reported smaller-than-expected profits.

Shoppers leave a Target in Amherst, NY, Tuesday, Aug. 18, 2009.
Shoppers leave a Target in Amherst, NY, Tuesday, Aug. 18, 2009.   (AP Photo/David Duprey)
In this Aug. 11, 2009 photo, shoppers move through the check-out line after a shopping trip to Wal-Mart in Tallahassee, Fla.
In this Aug. 11, 2009 photo, shoppers move through the check-out line after a shopping trip to Wal-Mart in Tallahassee, Fla.   (AP Photo/Phil Coale)
Sale signs adorn the door of an Urban Outfitters retailer on the Third Street Promenade in Santa Monica, Calif., Thursday, Aug. 13, 2009.
Sale signs adorn the door of an Urban Outfitters retailer on the Third Street Promenade in Santa Monica, Calif., Thursday, Aug. 13, 2009.   (AP Photo/Reed Saxon)
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7 comments
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paul123
Aug 19, 09 8:59 AM CDT
give it time, but consumers will come around. Reply
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+3
Fondue
Aug 19, 09 10:06 AM CDT
Start buying shit. You only live once. Reply
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-1
Doctor_Zaius
Aug 19, 09 10:09 AM CDT
come on guys, go buy underwear. It will help the economy! Reply
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-1
skeptik
Aug 19, 09 10:52 AM CDT
Maybe Americans are finally starting to understand the difference between "needs" ans "wants". Reply
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+2
Adapt-Overcome
Aug 19, 09 11:24 AM CDT
So, let me get this right. Target said their sales were down. I don't know how factual these numbers they quote are. I've been out and about on a regular basis, getting kids to and from practice,school shopping, etc. and the store parking lots are packed. To include the Target stores. We have 2 down the same main street (one at each end). I haven't seen anyone shopping any less in my neck of the woods. And I just recently purchased a car and even the dealership was packed with people purchasing cars and no there weren't clunkers in the trade. Just average folk deciding it was time to trade-in their car for a new one. We sat and talked to each other while our cars were being sent through make-ready. Reply
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+1

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