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Retailers Report a Crisis in All Aisles
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| Contributor | ArmyDem |
| Last Edited | ArmyDem Dec 05, 2008 07:43am |
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| Category | News |
| Media | Newspaper - Washington Post |
| News Date | Friday, December 5, 2008 01:00:00 PM UTC0:0 |
| Description | November Sales Slump as Shoppers Stow Credit Cards
By Ylan Q. Mui
Washington Post Staff Writer
Friday, December 5, 2008; Page A01
Retailers posted the worst November sales in more than 30 years yesterday, as holiday shopping not only failed to lift the economy but showed that the financial crisis is further distressing everyday consumers.
About 30 major companies -- including Macy's, Abercrombie & Fitch and Target -- posted sales declines at established stores. Overall, retail sales in November fell 2.7 percent compared with the same month last year, marking the second consecutive negative month, according to the International Council of Shopping Centers, a trade group.
And American consumers, whose spending accounts for the bulk of the economy and who have powered the nation out of previous recessions, are turning away from their most potent tool: credit cards. The recent tightening of consumer credit has shoppers leaving their plastic at home -- and sending retailers into a tailspin.
According to an analysis by Citi Investment Research, the constriction in lending that began earlier this year points to at least a 5 percent decline in consumer spending on goods during the heart of the holiday season. A Consumer Reports survey showed more than half of shoppers intend to rely less on credit this Christmas. One retailer, Circuit City, has already blamed the meltdown in credit for sending it into bankruptcy protection last month. |
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