Thursday, January 7, 2010

Retail Stores Sales Up

The New York Times is running an article entitled, "Retailers See Holiday Sales Rebound from Grim 2008." The article reports, "Retailers as varied as Costco and Saks posted robust year-over-year increases at stores open at least a year, a crucial measure of retail health known as same-store sales. Some chains — TJX Companies, Ross Stores and Aeropostale — reported double-digit increases. And a number of retailers raised their earnings estimates, suggesting the nation’s stores are in the early stages of a turnaround." However, the article also states, "Mid-priced department stores, a sector that has been struggling for a while, posted some of the month’s weakest numbers. Sales declined 7 percent at Dillard's, 3.8 percent at J.C. Penney, 2.6 percent at Bon-Ton Stores, and 2 percent at Stein-Mart."

Questions to Consider
1. Why do you think that sales typically increased at high end stores but stagnated or shrunk at mid-priced tiers?

2. Within your community have you seen any evidence that the economy is rebounding? Explain!

3. Explain the difference between discretionary spending and non-discretionary spending?

4. If you could do one thing to try and promote consumer spending what would you do? Why?

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