Wal-mart sales indicate tighter spending among consumers
There's not doubt that most Americans are having to tighten their fiscal belts and with more than a 100 million customers a week, discount giant Wal-Mart is a great place to get a sampling of U.S. consumer spending.
Last week Eduardo Castro -Wright, CEO of Wal-Mart's U.S. stores, reported strong sales in groceries, health and wellness products, as well as flat-screen televisions and other consumer electronics. And at the same time Starbucks reported a 28% drop in profits last quarter, Wal-Mart reported an increase in sales of coffee and cappuccino makers leading one to believe Americans are staying home more both for their meals and their entertainment.
However, even for Wal-Mart, clothing and furniture are not selling. "It's less about the new couch and more about a new slipcover," says Pam Goodfellow, a senior analyst at a firm that tracks consumer behavior. "The losing categories in this downturn include things you can make last a little longer or things that you don't really need like furniture and jewelry."
My big sign that times are getting seriously tough was on a recent trip to a favorite antique mall and seeing how many vendors have moved out, leaving empty spaces. Many of the remaining booths were offering discounts on their items, with the noteable exception of the gorgeous Hoosier cabinet I have my eye on! Are you noticing that money is tighter for everyone?
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Reader Comments (Page 1 of 1)
Meagan 5-08-2008 @ 1:44PM
You know it really says something about American consumerism if the way we're measuring a tight economy is people buying MORE flatscreen TVs and cappuccino machines.
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