A question, if retail prices go up 10% and the quantity of shit sold

[rzemanfl]

only goes down 8.6%, aren't sales up 1.4%? Put another way, isn't this increase in retail sales they are crowing about utter bullshit?

[napi21]

1. It depends on what happens to profits.

Sales dollars can soar if everything is put on sale and sold at a loss. Yes sales would be up! The REAL STORY is not wether sales are up or down, but if profits are increasing or not.

Remember, that's what happened to Walmart during the Xmas season. They started their sale prices much earlier than usual, and slashed their margins.

[rzemanfl]

2. Have you been watching what things cost lately? What I am

saying is that the figures are not adjusted to reflect increased prices. I give a shit whether Wal Mart loses its ass on the Chinese junk it sells.

[PeaceNikki]

3. But, previous poster is considering something you're not - cost.

Price of goods increased 10% - from $100 to $110 and sales came down 8.6%, resulting in $104 in sales on same goods...

but the COST of said goods increased from $50 to $65, margins are down from $50 or 50% to $39 or 37.5%. Get it?

[rzemanfl]

4. I am talking about the retail sales figures that they were bragging

about today, which have nothing to do with profits or losses, just what goes into the cash register.

[PeaceNikki]

5. Yes - those numbers have no bearing on margin. So, they can be bullshit.

And likely are... I work in retail and know exactly what you're driving towards - rising prices result in higher sales dollars. But - the retailers are raising prices in most cases to offset rising costs, so profits are stagnant - if not dropping.

[Donnachaidh]

6. No, they DON'T reflect the rise in prices

That's why they can claim to have an actual increase, when if fact the sales are plummeting. It's the same *creative bookkeeping* that keeps the American public thinking we have such a GREAT economy.

[PeaceNikki]

7. It's all about audience. To the investor we go "oooo... look!! sales are UP!!"

But the accountant goes... ick, margins are down.