Good News in Retail

From The Mess That Greenspan Made:

The Commerce Department reported a big upward revision to retail sales in January and a modest decline of just 0.1 percent in February as tumbling automobile sales were offset by higher spending at gasoline stations and clothing stores.



27 Responses to “Good News in Retail”

  1. 1 Jordon Lovett March 12, 2009 at 3:46 PM

    With the stock market jumping up almost 240 points and I can’t help but think that it is almost in direct correlation with the improved reports of retail sales. It seems that just a little good news has potential to build up the markets confidence again. The main question I have would be, is this going to continue or will the stock market begin to falter again when more bad news comes out about the stimulus package and the car market. Regardless, this news goes to show that a little improved goes a long way with the confidence of the stock market. In order for us to come back to where we used to be, we need a little positive momentum to snowball us back to a strong market again.

  2. 2 Michael Huddleston March 13, 2009 at 4:54 PM

    I wonder how long this will last. At work we were just notified that retail tax in Napa was going up by 1% April 1st, 2009. I was under the impression that the government wasn’t going to increase taxes to encourage spending. Or perhaps this is a really bad april fools joke and the government has a sick sense of humor.

  3. 3 BeuWolf March 14, 2009 at 4:43 PM

    Gov. Schwarzenegger recently announced that sales tax and auto registration tax is going to be raised in April. The sales increase just might be short lived, but who knows, things might get better from here on in. I wouldn’t hold my breath.

  4. 4 Rachel Sturm March 15, 2009 at 2:51 PM

    I believe that this increase of spending in the clothing and gasoline bus. is just temparary. If the people of this country dont see an increase of consumer confidence, people will begin to cut back on spending yet again. The Obama administration had better do something quicky to gain the confidence of the American consumer.

  5. 5 Houck24 March 15, 2009 at 3:56 PM

    Hopefully this is a sign for things to get better but I can only think that these increases in spending are only temporary. I think that the Economy needs quick action from our President in regards to the Economy to make things better. Im glad that Oil fell to $44 dollars a barrel which hopefully will show continued increases in spending at gas stations especially with summer around the corner.

  6. 6 Brandon Ruegsegger Macro ECON (M,W,F) March 15, 2009 at 5:51 PM

    I couldn’t help to notice that the piece if from “The mess that Greenspan made.” I recently picked up the former federal reserve chairmans book ‘The Age of Turbulence’. He’s a very intelligent guy, not to say that intelligent people don’t make mistakes but at least he possesses the character to admit when he was wrong. Amongst other responsibilities, the FED has the problematic job of balancing interest rates- an area that seems, at times, is a no win situation. With an ever increasingly complex economy it seems difficult to me to blame one man for the current state of the economy… especially one who can admit mistakes unlike most of the money grubbing execs and untrustworthy politicians.

  7. 7 Wordtown March 16, 2009 at 10:18 AM

    I don’t think this will last very long if the economy keeps going the way it’s going. The spending will fall if people keep getting let go from their jobs. Hopefully the economy starts turning around and stabilizing its self. Our spending is helping out, but I don’t think it’ll last too long.

  8. 8 Claudio Ramirez March 16, 2009 at 4:10 PM

    It is obvious to see the effects that this recession is having on the retail sales across the country and around the world. I work for a reatil store and just seeing the dramatic decline in customers that shop in our store speaks for itself. As a result, employees hours are being cut in half and in many cases worse because people dont have the money to go out and spend which effects out GDP just that much more.

  9. 9 NVC Storm March 16, 2009 at 6:53 PM

    This recession is having effects on the retail sales across the country and around the world. Effecting the retail sales also effects employee hours and may even get some people laid off. Hopefully the economy gets better in time and starts stabilizing itself, because we can’t afford for it to get any worse.

  10. 10 Ivy Quilala March 17, 2009 at 4:54 PM

    Working with my employer I have experienced some cutbacks in parts of the company. I have to say though we are not hurting as bad as some of the other companies are. I think that it’s due to the ethics of the company and how it’s being run. I’ve learned that the company I work don’t rely on any creditors to finance their operations. That’s extremely smart. Most of the business that have hardships now depended on creditors to finance the products they were bringing into their stores. And that’s a shame. We’ve been experiencing some financial difficulties with sales like everyone else. I think that being a cash wealthy company prevents us from having to make some drastic changes.

  11. 11 Gilberto Vazquez March 17, 2009 at 6:02 PM

    These numbers are very good to look at because maybe we are hitting the bottom of the recession and looking at things to get better from now on. I work at a grocery store and to me it sees like business is a little slower but that is expected because of the economy nowadays. but also people still need food and clothes so they have to buy these things. which help these stores very much.

  12. 12 Annmarie Minite March 18, 2009 at 9:10 AM

    I think its important to notice all the lower prices and sales taking place due to the economy. Safe-way, walmart, and target all have great deals and even some lower prices. retail stores are having huge sales. I think its necessary for retail and other necessity stores like safe-way to offer great deals and low prices. This gets consumers out to buy things they have to buy anyway. The more people are spending, even on sale items, the better our economy will get.

  13. 13 nancy moussa March 18, 2009 at 3:33 PM

    Retail is majorly suffering during this recession we are in. No one has the money to go out and buy the extra things they want in life. And if people do have the money, they are scared to spend it and just want to hold on to it. Most stores are lowering their prices to lower then ever before, and offering many sales, just to get people into their doors. The scary thing is that people need to spend in order for our economey to get better.

  14. 14 Keith C March 18, 2009 at 9:34 PM

    It’s nice to see some positive news in the retail section of the economy, hopefully a sign of things to come. It goes to show as well, as somebody had pointed out, the unpredictable and emotional run of the markets pertaining to news about financial figures. I can see no harm in increased and continued consumer confidence and spending. Otherwise, we will fall into the vicious cycle that has been hitting the “big industries” lately, housing loans, then auto, and now credit…

  15. 15 quiche March 18, 2009 at 11:06 PM

    It’s crystal clear where our retail sales are going, which is slowly
    declining. Many stores have closed down (e.g, Mervyns, macy’s,world market, &shoe pavilion). Consumers can’t afford to buy a lot of goods because they are no doubt tryiing to save their homes, jobs, paying off debt and education, and cars. Even if retail were to decrease the price of their goods won’t mean consumers will increase, which means that employees hours are cut and jobs are decreasing.

  16. 16 O'King Kole March 19, 2009 at 8:04 AM

    It’s sad to see many retail business fall or failing because of the recession that we are in now. Many of theses places hold a large amount of jobs for people. However it’s good to see that retail stores are finally starting to pick up business. Also it is interesting looking at the Retail sales graph on up until last year they were doing normal and then about June 2008 is when everything fell apart for main business.

  17. 17 Ricardo Olmos March 19, 2009 at 2:57 PM

    It is good news to hear that retail sales have shown a recent increase. In order for a company to sell their product they must keep inventory and client satisfaction high. During this recession it is a given that all company’s will have to sacrifice employees. I work In the wine industry and I have seen sales decrease and bottle production limit it’s hours. creditors are a bad idea when it comes to keeping record of financial operations.
    I know that retail stores might have more active customers We are starting to realize how important it is to spend and keep the economy flowing.

  18. 18 dionicio arechiga March 19, 2009 at 9:35 PM

    As you can see no body is trying to buy a car or increase their spending and now they are thinking about raising taxes by one percent. Huumm hopefully this is over soon ill mabe be another year who knows not me pshh.

  19. 19 Tanisha Econ101/Tuesdays March 25, 2009 at 2:31 PM

    Well a little improvement is better than no improvement! Something is working. Money is being put back into the economy. How long will it last? hopefully, the percentages will keep climbing upward. Next, we need to work on our employment rate going up so that more people will have money to spend on retail items…

  20. 20 Lucas Tirelli March 31, 2009 at 5:14 PM

    In my opinion, it is great to see some improvement, even though it is not a huge one. But it is one step forward, it looks like people are starting to spend a little bit more money again, which will surely help the economy to get better if this situation keeps going in the same direction. Hopefully customers gained some confidence in spending their money again, and things will clearly start to be better for everyone.

  21. 21 Matthew Dimech Econ-101 May 5, 2009 at 10:15 PM

    With sales tax and auto reg rising, this may indeed be very short lived. Money is being put back into the economy that is for sure. However, this maybe very short lived due to all the tax increases.

  22. 22 Kelsey Ryan May 6, 2009 at 11:38 AM

    It is always a relief to here some good news in an unstable economy. An example is the gas prices lowering after a summer of record high prices. I just really hope that things continue to get better in all areas of the economy. The hard thing is, is that there is no one answer to this problem.

  23. 23 Jay Surface May 9, 2009 at 3:29 PM

    Well this is common sense to me. Clothes are a lot cheaper than a car. A car is a luxury that people can afford to not by every year. Clothes, on the other hand, is something that diminshes quickly and need to be replaced constantly out of necessity. People buying more gas is a result of lower gas prices, which has been a bonus to everyone.

  24. 24 Audrey Hepburn May 11, 2009 at 4:51 PM

    Hopefully this is just temporary. If stores are noticing the change in the number of people coming in and buying stuff already then it will not last very long. Its great to get more money in the economy but people will stop buying so many clothes or will starting taking the bus more or car pulling.

  25. 25 Tracy Thomas May 12, 2009 at 12:31 PM

    That makes sense to me. I know when gas shot up to almost $5 dollars a gallon i was spending about 60 bucks a week. With gas being so high i had to cut back on eating out and buying clothes. Now that it’s shot back down to half the price at $2.50 a gallon i’m spending about $30 dollars a week. That extra 30 bucks helps out with food and is even enough to do a little shopping so I can see how lower gas prices have contributed to better retail sales. If your not spending all your money on gas you can spend it other neccesities like food and clothing.

  26. 26 jenna s May 17, 2009 at 12:30 PM

    Retail seems to be doing ok in this recession. The malls and outlets are still packed. This is probably true because buying clothes and other small item things are much less expensive than buying a car or house. It seems that people are cutting their big budget spending and keeping their everyday purchases the same. Perhaps this also because many stores are offering more sales, and since people are not buying cars, they can afford to spend more at the mall. I wonder if this has any effect on the computer/software industries?

  27. 27 Carl Hernandez May 25, 2009 at 3:34 PM

    Prices will rise after this bout of deflation. After a few years, once excess inventory is sold or liqudated one way or the other, what will be left is a low and cautious production of new goods. There will be less competition among surviving producers as well.Imported goods, which is just about every non-food product in the US, will get very expensive. But it is great to hear that retail is slowly getting better right now.

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