The nation's stores are slashing prices on recess goods by up to 70 percent, and some are sending sabbatical goods straightforward to liquidators in moves that typically happen after Dec. 25. WHY THE EXTREME MEASURES? Stores are grappling with a consumer clampdown since the economic danger escalated in September.
Goods stuck in the passage insufficiency to be cleared out. Retailers may board a collapse on the liquidations, but they are avoiding expenses for selling the distribute in stores, from shipping costs to paying for the items to be unpacked. IMPLICATIONS: The discounting is only expected to cast a gloom sales and profits for the festival season, which typically accounts for as much as 40 percent of retailers' profits. Mark Vitner, major economist at Wachovia, expects retail sales to capitulation 0.5 percent for November and December, the firstly go since 1982.
WHAT'S NEXT? Such stern measures bring to light the pecuniary sift that stores are experiencing and abandon more concerns about the fiscal condition of the industry. More collect liquidations are expected after Christmas.
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