MasterCard (NYSE:MA) runs one of the best retail tracking systems in the country. That makes sense given how many transactions involve its cards.
Numbers from its data collection system verify that retail sales are bad, but the latest numbers show how bad. According to Reuters, "Overall apparel sales are down 19 percent from the same period a year ago, according to a report by SpendingPulse," Appliance sales dropped 22% about the same amount as purchases of luxury goods.
A week ago, the America's Research Group said it expected retail sales to drop 1% this season," the first time the research firm has forecast a decline in almost a quarter century of surveys." That number is almost certainly bogus and wildly optimistic.
Same-store sales at a number of the nation's largest retailers fell by double digits in October, yet analysts persist in saying that, while the holiday season will be rough, it will not be catastrophic. The deep trouble is already clear now, and it will certainly be confirmed when November and December numbers have finally been tallied. Those looking for a silver lining won't find one.
Douglas A. McIntyre is an editor at 247wallst.com.
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