Retailers likely to post grim 1st-quarter results

Source: Associated Press

NEW YORK - After slashing inventory and cutting expenses, the retail industry is still bracing for the largest overall quarterly profit decline in at least nine years when merchants report their first-quarter earnings this week.

Faced with one of the worst consumer spending climates in almost two decades, stores are going to have to find clever ways to attract increasingly thrifty shoppers contending with higher gas and food bills and a slumping housing market.

Wal-Mart Stores Inc. launched a new online feature Friday that offers tips from financial expert Ellie Kay on how consumers can stretch their budgets, even beyond the store. Rival Target Corp. aims to add some sizzle to an inexpensive clothing collection by designer Rogan Gregory by selling it first at upscale Barneys New York before shipping it to its own shops for a limited period.

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Retailers reported better-than expected sales at established stores for April, but that doesn't mean that shoppers have been in the mood to splurge. Business was boosted by heavy discounting and a quirk in the calendar that meant an extra shopping day compared with the year-ago period.

Read more: http://news.yahoo.com/s/ap/20080511/ap_on_bi_ge/retailers_outlook

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this line bear repeating:

Faced with one of the worst consumer spending climates in almost two decades

People only have a certain amount of money, and if more is required for gas to get to work, buy food, and pay untility bills, there's no more disposable money for anything else. I seriously doubt the IRS refund is going to matter much either. Way too many other demands for that money than WM etc!

wait until they see next quarter's numbers. I'm already cutting back on stuff like chips, snacks and un-necesasary items that I always bought along with groceries. Next week I'm cutting back on lunches for weight control mostly but that will figure in as well. I've already cut back driving and now that the warmer weather is here, I'll be riding the bike a bit more.

i have`t bought any new clothes in the last two years. just about everything i need i have found there. lots of brand new 50`s and 60`s appliances....

Maybe if people earned more they could keep up. Retail is one of lowest for wages.

I'm headed for ANOTHER record-breaking bad month if things keep up.

Needless-Markup has become Needless-Markdown.

"Faced with one of the worst consumer spending climates in almost two decades".

George, welcome to recession. Population: you, and your father.

is good news.

Good. I'm glad people are not buying those disgusting toxic clothes they're selling. Smell like formaldehyde.

and expect to support consumer spending.... Something's gotta give.....

Our economy needs to change fundamentally to kick our obsession with buying stupid crap on credit. I hope people continue to be thrifty after the worst of this mess is over.

Americans, neither on the corporate level nor as individuals never plan for any more than the next 1-3 years. All that matters is how much money they can make and spend this year. It's a very foolish and dangerous attitude.


Edit: Well, maybe not allAmericans

But we're still paying on these two wars we bought, all shiny and new a few years ago. And now we're having to spend every last disposable penny just buying gasoline. Somebody's going to take it in the shorts, and it looks like it's going to be you.

Will this alter the way corporate America views the prospect of war in the future? Time will tell.