Heading into the key holiday season, retailers may be in for more tough times, according to Joe Feldman, senior research analyst at Telsey Advisory Group. Kelsey Hubbard reviews the sector’s latest round of results.
via Marketwatch
Consumer Credit outstanding fell $14.8b in Sept seasonally adjusted, almost $5b more than expected and marks the 11th month in the past 12 of declines. At $2.456T outstanding, it is 4.9% below the record high in July '08. After a flat reading in Aug, (didn't fall b/c of the CARS program), non revolving debt outstanding fell by $4.9B. Revolving (mostly credit cards) balances outstanding fell by $9.9B. To fully put into perspective today's data, look at the current level of consumer credit (doesn't include mortgages, the biggest chunk of consumer credit) relative to GDP. As of Q3, it totaled 17.2%...
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November 6th, 2008 at 4:59 pm
Lots of BK ahead for retailers.
November 6th, 2008 at 6:32 pm
I think, because the media scared everyone out of their shorts with the depression stories and market crash the Oct results will be the worst of this years.
November 6th, 2008 at 7:57 pm
I saw a wreath on the door of a coffee shop today!
Also saw massive sales at World Market (odd combo of food, booze, furniture and kitchen accessories) — not clearing out summer stuff, like 50% off bedding. Also, roamed around the Macy’s in Chicago’s Water Tower last week and saw sales all over. But even at 50%, who is the moron paying $70 for a pair of jeans?