What economic recovery? U.S. retail sales worst since 2009

idiot

Cotten Timberlake reports for Bloomberg, Feb. 27, 2014, that according to the research firm Retail Metrics Inc., U.S. retailers last quarter had their first quarterly drop in sales since 2009 — an average drop of 6.1%.

U.S. retailers’ total revenue also rose at the lowest rate since 2009, of a paltry 1%.

The results paint a grim picture of an industry hit hard by the sluggish job recovery and slow wage growth, which have turned U.S. consumers into a nation of penny pinchers. 

Ken Perkins, president of Retail Metrics, said in a phone interview: “It was a very tough season for the retailers, no question about it. They were facing pressure on multiple fronts.” Perkins said the lack of wage gains restrained many consumers from making discretionary purchases. To cope, some chains cut prices by 50% to 60%. The industry hasn’t seen such heavy discounting since the “fire sale” that took place during the 2008 holiday quarter.

Teen retailers were the hardest hit, their profit is decreasing 37%. Electronics chains and discounters are down 17% and 12%, respectively.

Still, some chains are predicting a rebound this year. Target Corp. — which saw profit and revenue tumble last quarter, in part because of a hacker attack — said sales have shown signs of improvement this month. Macy’s Inc. also predicted that spring would bring a sales recovery, after frigid weather forced it to close hundreds of stores.

~Eowyn

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0 responses to “What economic recovery? U.S. retail sales worst since 2009

  1. Thanks for this article, Dr. Eowyn. It confirms the facts we experience daily. Here in Massachusetts, the collapse of the system is unspoken, except on conservative talk radio. It’s like the “elephant in the room” when families skirt around the subject of one member’s addictions.

    Sometimes I feel like Jeremiah, the weeping prophet. Of course, Jeremiah’s writings contain some of our most rich and encouraging words from our Lord. There is indeed a treasure in our trials. We have God’s fellowship in them if we seek Him.

     
  2. Love that mug shot! Where can we get 1000 more for public posting on telephone & utility poles, as
    “Missing Person: Lost Soul in need of repentance ASAP! Ph Hades 666-5555 if you see him, but DO NOT approach him.”

    “He is clueless, and is a clear & present danger to one & all!”

     
  3. Forward!

    With this admin in charge, it’s not surprising. Since I just moved I’ve been shopping at Dollar Tree for things – garbage pails, shower caddy, wall hooks, etc. Best deals on certain things!

     
  4. There’s a recovery?

     
  5. Gas up, food up, earnings down, work hours down, taxes up, healthcare cost up, utilities up, industry closing, food stamp usage way up, unemployment out of sight, abuse abuse, abuse, add some fraud and waste and I am just not seeing a recovery, call me dim.

     
  6. Pingback: What economic recovery? U.S. retail sales worst since 2009 |

  7. What a terrible insult to Alfred E. Neuman.

     
  8. Excellent post, doc! As someone who has looked for a job the last two years, I can attest first-hand that there is ZERO economic recovery. Companies are hurting. The stock market is up because the Fed has printed money non-stop and given it to the banks. There is no manufacturing base behind it, no gold or silver to back it, nothing.

     

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