RetailSales posts
FeedPosted Jan 8th 2010 8:20AM by David Schepp (RSS feed)
Filed under: Before the Bell, International Markets, Commodities, Oil

Stock futures on Wall Street were modestly higher ahead of a much-anticipated report on December employment, due at 8:30 a.m. Eastern time. The Dow Jones industrial average was higher by 6 points to 10,551, while the Nasdaq ticked up 2 points to 1,879.50 and the S&P 500 was up slightly to 1,137.60.
Friday's latest Employment Situation Report from the government is expected to provide further evidence that the nation's jobs picture continues to improve. A Labor Department report yesterday showed that although
initial claims for jobless benefits inched 1,000 higher to 434,000 in the latest week, continuing claims plunged 179,000 to 4.8 million to their lowest level in a year. And on Wednesday the ADP National Employment Report showed private-sector employers cut the fewest number of jobs since March 2008. Expectations are the nation lost 25,000 non-farms jobs in December, while the unemployment rate inched up to 10.2%, according to Briefing.com.
Continue reading Before the Bell: Stocks Edge Higher Ahead of December Jobs Data
Posted Dec 29th 2009 9:30AM by Mark Fightmaster (RSS feed)
Filed under: Before the Bell, Good news, Economic Data

According to the International Council of Shopping Centers (ICSC) and Goldman Sachs, the week before Christmas was a
solid one for retail sales. Compared to a year earlier, retail sales increased 2.3% as last-minute shoppers flocked to chain stores. This increase is impressive, but it starts to look a bit weaker when taken in a week-over-week context. Sales increased 0.4% when compared to a week earlier.
When looking at the week-over-week increase, which some call less than impressive, it's important to take into account the massive winter storm that battered the East Coast. This storm had to have an impact on the amount of shoppers trudging out to retail outlets. Despite that, the percentage of sales increased still.
Continue reading Retail Sales Increased Last Week
Posted Nov 17th 2009 2:20PM by Tom Johansmeyer (RSS feed)
Filed under: Black Friday, Personal Finance, Headline News
No, don't expect to see windmills and solar panels -- consumers are leaning toward a different kind of green this holiday season: cash. Rather than hit their credit cards, shoppers will only be spending money they have (and can see and touch). Seventy-one percent of consumers are looking to cash and debit cards as their primary form of payment for holiday shopping this year, which the National Retail Foundation pegs as the highest level since 2005.
This could be a problem for the retailers.
Sure, you'd think that the merchant fees on credit cards make cash more attractive to the sellers. But, Ellen Davis, a spokesperson for the NRF, says that most retailers have found they can talk credit card buyers into up-sells more easily. That leads to a bigger basket size and more revenue. Done successfully, it should comfortably absorb the impact of merchant fees. James Roberts, a marketing professor at Baylor University, adds that using plastic makes consumers more likely to buy at all, let alone more.
Continue reading Shoppers going green for Christmas
Posted Nov 16th 2009 2:40PM by Tom Johansmeyer (RSS feed)
Filed under: Amazon.com (AMZN)
Okay, so we all know retailers are looking for every holiday edge this holiday season. Consumer spending's been down, and the sprint to Christmas offers the last chance to pump up those Q4 numbers. They are trying out new ways to reach and engage shoppers, particularly via social media. But, the most effective way to bring new customers into the fold -- and keep them around for a while -- may be to pick up the shipping tab. It's pretty old fashioned, but it's best by test.
Once considered a bonus, a special effort, free shipping isn't really optional any more. If a shopper has to pay for shipping from one retailer, he may move on, knowing that plenty of others aren't charging for it. Rebecca Lieb, vice president at Econsultancy, a digital marketing news publisher, notes, "You're delighted the first time you get free shipping, but you expect it the second time."
And, free shipping shouldn't come with any strings attached, according to Shop.org's eHoliday Study (Shop.org is the e-commerce division of the National Retail Federation). Five years ago, 25% of retailers didn't charge for shipping during the busiest shopping day of the year. This year, however, 57% are planning not to hit their customers up for the extra cash, making this cost just another expense associated with running the business during the holiday season.
Continue reading Consumers feel entitled to free shipping
Posted Oct 13th 2009 9:30AM by Tom Johansmeyer (RSS feed)
Filed under: Bad News, Economic Data, Recession
It's going to get worse before it gets better, according to Stone & McCarthy Research. Early 2010 has "the more troublesome outlook," as the economy will have to walk on its own, the research firm says. This year, it's had a pair of crutches: tax credits for first-time home buyers and the cash-for-clunkers program. So, if the stimulus hasn't taken hold by the end of the year, the first quarter could be a bruiser.
The firm adds that "continued growth in aggregate demand" is needed, bringing the discussion back to consumer spending . . . which is where it will always land. We're likely to see the 3.2% growth rate from July through September drop to 2.4% at the end of the year because the crutches will have been gone. And, let's not forget that unemployment is expected to break the 10% level next year.
Continue reading Stone & McCarthy suggest: Make it to March
Posted Oct 12th 2009 2:50PM by Tom Johansmeyer (RSS feed)
Filed under: Employees, Economic Data, Recession, Financial Crisis
We've watched stock market numbers bounce around for two years. Unemployment stats have served as unpleasant reminders that, for some, leading indicators haven't translated to reality. We look for so many ways to understand the brutal economic environment with which we've had to contend, and all the choices can make your head spin. So, let's make it simple. Here are eight ways to tack a label onto the financial world in which we live.
1. Lost market value
Total stock market losses from October 2007's top to March 2009's bottom: $11.2 trillion
Total gains in the stock market since the bottom: $4.6 trillion
Lost ground: $6.6 trillion
2. Bad days
Percentage of the 10 worst days in history for the Dow Jones Industrial Average that happened in 2008, by point drops: 60%
Percentage of the 10 worst days in history for the DJIA that happened in 2008, by percentage drops: 30%
3. Mutual funds
Value of mutual fund assets at the end of 2007: $6.5 trillion
... and a year later: $3.7 million
Lost value: $2.8 trillion
But, it got a little better at the end of August 2009: $4.5 trillion (value of assets)
Continue reading Eight ways to define the recession
Posted Oct 9th 2009 4:20PM by Tom Johansmeyer (RSS feed)
Filed under: Target Corp. (TGT), Kohl's Corp (KSS), Economic Data, Limited Brands (LTD)
Consumers are finally spending more, with September posting the first gain in more than a year. The International Council of Shopping Centers and Goldman Sachs (NYSE: GS) found that retail sales inched 0.1% higher last month. It doesn't seem like much, but a gain when you anticipate a fall is good news magnified. But, it came at the expense of great deals and other tools to entice somewhat hesitant customers into stores.
Kohl's (NYSE: KSS) and Limited Brands (NYSE: LTD) reported sales increases in September for stores open more than a year. J.C. Penney (NYSE: JCP), Macy's (NYSE: M) and Target (NYSE: TGT) posted declines, but they were better than expected. Delayed school openings thanks to a late Labor Day helped push to September sales that might have occurred in August otherwise.
Of course, all eyes are on the coming holiday season. The National Retail Federation forecasts U.S. consumer spending of $437.6 billion – up only slightly from $433.7 billion four years ago. So, we still have a lot of ground to make up before we can celebrate a recovery. As long as the situation is staying steady, though, we'll at least have a solid starting point.
Posted Oct 8th 2009 9:00AM by Tom Johansmeyer (RSS feed)
Filed under: Economic Data, Recession
Consumer debt levels fell again in August for the seventh month in a row. Facing continued instability in the job market, people are paying down their debt, as a way to protect themselves. Savings are up, and borrowing is down – which could weaken the recovery. Consumer spending accounts for 70% of economic activity in the United States.
Total consumer debt outstanding dropped by $12 billion in August, according to the Federal Reserve, reflecting an annualized rate of 5.8%. Reality outpaced Wall Street's expectations, which were around $10 billion. In July, consumer debt outstanding fell $19 billion (9.1%), which was the largest in hard-dollar terms since 1943 and on a percentage basis since June 1975's 16.3%.
While consumer fear is playing a significant role, as a touchy housing market and dicey job situation leave little to lean on, the banks are also responsible for the change in direction. They aren't lending as easily, with stricter standards limiting the amount of credit available to consumers. You can't spend what you can't borrow.
Continue reading Consumer debt declines for seventh month in a row
Posted Oct 7th 2009 2:40PM by Tom Johansmeyer (RSS feed)
Filed under: Target Corp. (TGT), MasterCard Inc'A' (MA)
MasterCard Advisors (NYSE: MA) service SpendingPulse says luxury and electronics sales headed upward last month, in a pleasant deviation from what became the norm all too long ago. A few other product categories posted gains as well – showing stability, if not a recovery. But, at this stage of the game, we'll take what we can get, right?
Luxury sales, not including jewelry, gained 3.4% year-over-year – that's an increase of $891 million. Last September, luxury goods suffered a 9.4% decline. Yet, this category is still below its September 2005 level of $94 million. Jewelry sales gained 1.2% relative to last year, compared to a year-over-year decline of 5.8% a year ago. Compared to apparel sales, this is a profound turn. In September 2008, the clothing category was off 5.7%, and this September, it was down only 2.9%.
Continue reading Luxury spending on the rise
Posted Sep 15th 2009 2:20PM by John Jagerson (RSS feed)
Filed under: Hewlett-Packard (HPQ), Best Buy (BBY), Lowe's Cos (LOW)

Retail sales numbers jumped more last month than they have in three years. It would be understandable to assume that this was due to the "cash for clunkers" program, which ran through August, but even excluding auto-sales retail numbers were higher than expected.
Core retail sales (which excludes autos and gasoline) was up 1.1% in August, which was almost 300% higher than anticipated. The question at this point is whether that number would have been even better and ultimately more beneficial for the economy if the government had not siphoned so much spending into autos.
Continue reading Retail sales rally on more than just autos
Posted Aug 19th 2009 8:30AM by Mark Fightmaster (RSS feed)
Filed under: Before the Bell, Earnings Reports

Retailer
BJ's Wholesale Club (NYSE:
BJ) stepped into the earnings spotlight this morning,
reporting second-quarter earnings of 64 cents per diluted share. A year ago, BJ reported net income of 61 cents per diluted share, including three cents per share from favorable state income tax audit settlements.
During the first half of 2009, BJ raked in $1.09 per diluted share compared to 90 cents per diluted share a year ago. Quarterly sales slipped slightly more than 5% to $2.5 billion on a year-over-year basis, but the bulk retailer did forecast full-year sales to increase 0.5% to 1.5%. On the forecast front, BJ now expects full-year earnings between $2.46 and $2.56, which is higher than the previously forecast $2.44 to $2.54.
Continue reading BJ Wholesale reports second-quarter earnings
Posted Jul 14th 2009 4:45PM by Tom Johansmeyer (RSS feed)
Filed under: Wal-Mart (WMT), Target Corp. (TGT), Abercrombie and Fitch (ANF), Economic Data, American Eagle Outfitters (AEO)
Last summer we lamented the price of gas. This year, however, there's at least one upside. Retail sales for June were up 0.6% - substantially better than the 0.4% anticipated – with the gas prices leading the charge. A slight tip in the brutalized auto manufacturer sector helped, as well. This was the largest retail sales increase in five months.
Gas stations benefited from the cost of fuel, adding a bit of pep to a beleaguered retail industry: sales were up 5% year over year, after doing the same in May. And, car dealers had their best month since January: the sales of cars and parts climbed 2.3%. Nonetheless, this corner of the retail world is still off 14.5% from last year. It may have helped last month, but we're still pretty far from a cure.
Continue reading Gas prices drive retail sales rebound, coveted brands still struggle
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