People without jobs and money aren't shopping......Wall Street flummoxed

[marmar]

By Andria Cheng, MarketWatch


NEW YORK (MarketWatch) -- With teen unemployment at triple the rate of the already high national average and consumer confidence at its lowest level since February, chains posted disappointing July sales, signaling promotions may intensify for pivotal back-to-school selling period.

So far, numbers from retailers that have reported showed early back-to-school sales, clearance sale, as well as demand for shorts and air conditioners in the scorching heat have failed to boosted retailers' sales to the expected levels in July.

Buckle Inc. sales dropped 9.3%, missing estimates of a 1% decline.

Wet Seal Inc. said second-quarter profit will be at the low end of its previous forecast after sales dropped more than it expected. Hot Topic Inc. projected a bigger-than-expected loss after its sales dropped 9%, worse than the 2.6% drop analysts estimated.

"Weak traffic trends and a highly promotional environment continue to pressure sales," said Ed Thomas, chief executive of Wet Seal, in a statement.

Many other retailers also didn't fare too well. Houston-based Stage Stores Inc. said sales fell an unexpected 0.6% and it expects second-quarter profit will be at the low end of its previous forecast range. ..........(more)

The complete piece is at: http://www.marketwatch.com/story/teen-stores-pace-retailers-july-sales-shortfall-2010-08-05

[no_hypocrisy]

1. One of the unfortunate consequences of basing your economy on consumerism.

The corporations need to provide capital to the consumers who will "return" the money to the corporations.

[avaistheone1]

5. It is also one of the consequences of offshoring our jobs to other countries

[Yavin4]

8. You Are 100% Correct About This

Globalization has divided world economies into consumer/producer states. China and India are primarily the producer nations, and the U.S. is primarily the consumer nation.

Trouble occurs when the consumer nation stops consuming which is what's happening. That pushes the entire world economy into a recession like state.

Globalization is nothing more than a currency scam.

[glitch]

16. And sucking HUGE amounts of cash out of an economy and shipping it to a war zone

where it "mysteriously" disappears.

[Dappleganger]

2. And people like us who are finally employed again...

are actually making less than we did a decade ago and squirreling away any money we can find to save up for the next big layoff.

My husband teased me last night, because he said that whenever he says he had a hard day at work he sees a look of panic on my face. In my mind a hard day means layoff, still. :(

[LibDemAlways]

11. Exactly. My husband was unemployed for 6 months and finally

accepted a job that pays 40% less than what he was making previously - even though he now has more responsibility and a loftier title. What no one in the media is talking about is how employers are taking mean advantage of the poor job market by paying people considerably less than they're worth.

[Dappleganger]

19. They certainly are.

They know they have the upper hand and can pay whatever they want.

[LynneSin]

3. What they don't get is that people with jobs aren't shopping either...

mainly because for some of us we realize we could be next in the unemployment line so we better save up.

[Yavin4]

6. Exactamundo!

I just started working again after being out of regular work for 2.5 years. I still spend like I did when I was unemployed. Whatever is left over goes directly into savings.

The only additional spending that I do is for professional development.

[Dappleganger]

20. +10000

See my post above.

[Blue Owl]

4. The terrorists have won

If we can't go shopping, how can we win the war against terror?

We're doomed, dooooooooomed...

[piratefish08]

7. wall street can collectively jump out their windows.

i stopped giving a fuck what wall street thinks about anything.

[LeFleur1]

9. They Just Don't Get It

If the Middle Class has no money (or refuses to spend what they have because they've learned their lesson) NO ONE has any money.
We've got the power. If you have a job, spend on only what you need, a bit for entertainment, some to those in need. Let Wall Street eat bread.

[glitch]

17. It's raining men, halleluja!

I've always liked that song. :evilgrin:

[undergroundpanther]

22. I wish

all the wall street dumb rich pigs would collectively jump out high rise windows like they did in 1929..But this time I'd like each jumper to be holding onto as many right wing assholes they can grab as they jump.If the numbers of suicided assholes is a clean up problem..Just get a backhoe gather them up toss 'em all in a mass grave and burn them to a crisp. Why not leave them in obscurity,put their stupid "voodoo economic" ideas in the laughingstock, debunked files shut that selfish Ayn Rand and Leo Strauss bullshit down cold. Thier mass self immolation would stop the bullying,fanatic religious corporate military "complex" . and others with a wiser sort may expose it's criminal corporate and military 'secrets' and let the healing begin! I will laugh as the bully 'church leaders' go take themselves out on Tee Vee that would be a must see 600 club...I will Rejoice at the end of the cult of the "invisible hand" of the market of insatiable greed, Let the the warmongering monster starve,Stop the widespread class war,end so much misery,Bankrupt the industry of poverty,Stop the for profit environmental ruin Stop the massive exploitation of humanity and eliminate the worst mass abuses of power,it will die with them if we do not let them scam us again. I really do wish they'd all just kill themselves.

[eilen]

10. No surprise

My husband is still unemployed. He just transitioned to the federal extension. I need a "new" car as my vehicle blew a head gasket. I'm using our old winter rat (182,000 miles) that needs a new manifold. I have decided to replace the manifold (approx $800) but still don't know what to do about the Blazer with the blown gasket. My options are: repair for about $2,000 but then I still have a gas guzzler that costs me thousands in repairs every year or sell to the junk guy (at least that is what I think my options are). If my husband was working, I'd purchase a new gas efficient vehicle but I don't want to take any extra payments on.

Other than that, I don't buy stuff. I am eating a healthier diet, keeping meat consumption to my lunch meal. I still feed my son what he needs but don't spend what I used to. We are making our mortgage and bills just fine but seriously have cut back on discretionary spending. I am enjoying gardening.

Why do they think people will spend when unemployment keeps increasing, pay is cut and health costs, education and gas keeps rising?

[Buns_of_Fire]

12. Well, well... And how many of wall street's wunderkids did it take to figure out THIS out?

In other news flashes, it has been reported that a drowning person's first desire is for air. (I believe the second desire is to strangle the bastard who shoved them into the water.)

[lunatica]

13. The US could become a vast wasteland of malls

Except for those upscale ones where the upper 1 percenters shop.

[marmar]

14. It's on its way......How much vacant strip mall blight is there already?

nt

[Gin]

15. wait a minute....I thought businesses were going to create jobs

because of the bush tax cuts....imagine what shrub would say if he was in office....shop till you drop!

[The Backlash Cometh]

18. Wall street taketh away our investments,

and taketh away our spending money.

Any questions?

[Kat45]

21. Hey Wall Street: DUH!