Reply #31: Nation's Retailers Face Challenging 2005 [View All]

http://story.news.yahoo.com/news?tmpl=story&cid=509&ncid=749&e=10&u=/ap/20050119/ap_on_bi_ge/retail_sales_outlook

NEW YORK - After frustrating the nation's retailers throughout the holiday shopping season by waiting until the last minute to buy gifts, consumers are not expected to give merchants much relief in 2005.


With gasoline prices still high and the job market still volatile, consumers — particularly those that shop at discounters and mid-tier department stores — are expected to remain frugal. Rising interest rates will also add to consumers' expenses.


"Gasoline prices certainly have impacted middle-income and lower-income shoppers. It is causing them to reconsider discretionary items and big ticket purchases," said C. Britt Beemer, chairman of America's Research Group, based in Charleston, S.C. "On the job market side, there are new jobs being added, but employees are not seeing the kind of pay rises they used to make. And they're not as willing to go out and spend those extra dollars."

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The bright spot remains well-heeled consumers, who have been buying mink ponchos and bangles as well as status handbags and jeans, translating into robust sales for stores like Neiman Marcus Group Inc. and Nordstrom Inc. But these upscale merchants need to keep up with trends and offer new enticements to shop and buy if they want sales to continue to hum. Coach Inc., for example, is stepping up its offerings in high-end tote bags, which are replacing women's briefcases.

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Beemer also suggested that the political debate over overhauling Social Security (news - web sites) is fueling consumers' concerns about retirement, which could cause them to pull back further.

Good move Shrub! Seems the demon seed just spreads shit where ever he goes.