Retailers on the rebound
Stocks opened higher after several retailers posted surprisingly positive sales figures.
Wal-Mart reported a same store sales increase of 3.8 percent, while Costco reported an 8 percent increase. BJ’s Wholesale reported a huge increase of 17.8 percent. Wow.
It’s too bad the good fortune was not universal…Nordstrom, Limited Brands and the Gap saw same-store sales decline by 3.8, 5 and 6 percent respectively.
Is this discount retailer revival a sign of renewed life in consumer spending or is it just cash moving from one set of retailers to another?
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POSTED IN: Consumer Debt, Economy, News
1 opinion for Retailers on the rebound
Jon
May 8, 2008 at 10:24 pm
I think the main focus on the retailers isn’t where people are buying, its how they are making the purchases. Most of consumers, if the economic recession thesis holds, are strapped for cash yet still need the basic goods. The way to play it is the processing of the transactions, Visa and Mastercard. The retailers just pass the transaction cost along. For example all NJ gas stations are now building into the price of gas the cost of running the credit cards (6 -9cents). Those are the companies (V & MA) that make out, not the retailers.
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