Retailers in a slump while Discount Stores win big.

http://www.nytimes.com/2008/05/14/business/14shop.html?ref=business

Wal-Mart Stores and the TJX Companies said Tuesday that sales and profit surged during the first three months of the year as belt-tightening consumers flocked to their deeply discounted merchandise.

Profits rose 7 percent at Wal-Mart, the giant discount chain, and by 20 percent at TJX, the owner of the cut-rate clothing retailers T. J. Maxx and Marshalls. But the slowdown in consumer spending is proving less kind to full-price retailers, like Macy’s, Nordstrom, J. C. Penney and Kohl’s, which are expected to report big declines in first-quarter earnings this week, according to forecasts from analysts.

On average, those four retailers are expected to report a 50 percent decline in first quarter profit, predicted Bill Dreher, an analyst at Deutsche Bank.

“People are cheaping out, and retailers that sell discretionary products at full prices are having a very tough time,” Mr. Dreher said...

Kohl's always sells merchandise at a discount. In fact, that's where I buy most of my clothes.

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