Tech & Biz

US retail sales in record plunge

by Jordan Yerman | November 14, 2008 at 09:16 am

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Retail sales are in decline in the US, the steepest drop in 16 years. In the face of rising unemployment, unstable corporate performance, and dismal market numbers, this isn't altogether surprising, but worrisome nonetheless as we head into what should be the busiest shopping time of the year, when stores across North America hope to win back some of the year's lost ground.

The US Commerce Department said sales fell 2.8% in October. This follows a 1.3% decrease in September.

However, analysts pointed out that retail figures excluding cars and petrol had fallen just by 0.5%.

Furniture and home furnishings sales were down 2.5% as the housing downturn hit related sectors.

This month, several US chain stores, including Macy's and Best Buy, issued profit warnings for the rest of 2008.

Labor Department figures showed import prices dropped 4.7 percent, pointing to a rising danger of deflation, and a private report said consumer confidence this month remained near the lowest level since 1980.

Spending may continue to falter as mounting job losses, plunging stocks and falling home values leave household finances in tatters.

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corbinse

at 17:33 on November 14th, 2008

Spending in the large department stores maybe down and Black Friday may not recoupe the profits they have lost over the year. (this is yet to be seen) But Wally mart may be head and shoulders above the rest

"Wal-Mart officials sounded an upbeat tone for the holidays as the retailer posted a 10 percent increase in third-quarter profits on Thursday, saying that shoppers are responding to its early Christmas promotions." reported by RealClear Markets

And I know that even my girls are looking for that new iPod or the latest electronic gadget to be under the tree this year Rueters reports that these little tech items may still be the best sellers out weighing sports items and OH no even Gym memberships

Shoppers who crave electronics goodies, but are increasingly short on cash, may sacrifice a gym membership or movie popcorn just to get a new gadget like the "Google phone" this holiday season. Rueters