Credit Crunch Doesn't Dampen Retail Numbers

Slowdown scales down costs as even super-rich turn 'frugal'

(NEWSER) - The slowdown in luxury spending has spurred Neiman Marcus to make its "fantasy items" in this year's Christmas catalog a lot less fantastic than in years past. For the first time in a decade there's no $1 million-plus items on offer, like the $20 million submarine offered in 2000 or the $10 million zeppelin in the 2004 catalog, reports the Wall Street Journal. The highest-priced item this year is a "his and hers" two-seater plane for just $250,000, including flying lessons. More»

Retailers lure back to school shoppers with 1¢ gimmick

(NEWSER) - Retailers, scrambling to connect with the fragile consumer psyche, have turned to the lowly penny for a boost, offering everything from clothing to crayons for a single cent, the LA Times reports. Nearly taken out of circulation three years ago, the penny may be a lousy coin, but it’s a great gimmick, analysts say. “Buy one, get one free has been around so long it doesn’t even make a noise,” explains one. “Buy one, get one for a penny feels like a deal.” More»

Recession isn't over as far as consumers are concerned

(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. More»

(NEWSER) - Retailers are seeing the slowest back-to-school season in many years as consumers cling to their cash, the New York Times reports. Estimates on sales, an early indicator of how stores will fare in the holiday season, show declines of 3 to 8% from last year, which saw a 1% increase. Spending is expected to drop on clothing, electronics, and every other category apart from traditional school supplies like pencils and notebooks. More»

(NEWSER) - Many credit card users are getting to the register only to discover that their cards have been canceled—without a word of warning, the Wall Street Journal reports. With credit tightening, many issuers give only a cursory rationale for the drops, and then only by mail weeks later. And though it’s frustrating and embarrassing for consumers, it’s totally legal. More»