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How can retail sales be "up"

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caty Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-26-07 03:13 PM
Original message
How can retail sales be "up"
if people are "spending less" than usual?

http://www.bloomberg.com/apps/news?pid=20601087&sid=ab.HYma7x48w&refer=home

"Nov. 26 (Bloomberg) -- Sales gained in the days after the U.S. Thanksgiving holiday as retailers lured more customers with discounts even as individual shoppers spent less on average.

ShopperTrak RCT Corp. reported yesterday an 8.3 percent gain in sales the day after Thanksgiving, a bigger increase than it expected. The National Retail Federation said 147 million customers visited stores, up 4.8 percent from a year earlier, while shoppers spent 3.5 percent less per person."

Do they mean the "number" of sales is up? If people are spending less, I would think that their profit would be down. It sounds like a rosy spin on less money taken in.

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Kutjara Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-26-07 03:27 PM
Response to Original message
1. Either more people are shopping, which compensates for...
...the lower per head spend, or more people are wandering around the stores, looking at all the stuff they can't afford.

I'm guessing the latter. My local mall has been full the past couple of days, but not many people seemed to be carrying shopping.
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Bucky Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-26-07 03:36 PM
Response to Original message
2. "Sales gained" could mean just more customers, not more dollars.
That is, the cheapskate quotient could be up. More people shopping, but they're spending less per capita and even less overall.
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caty Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-26-07 04:45 PM
Response to Original message
3. What did our government expect?
They've been telling us to "go shopping" to help the economy---but, go shopping with what. Lost jobs and lower wages don't set the stage for a shopping spree. I'm waiting to hear the final tally after Christmas.
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PeaceNikki Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-26-07 05:53 PM
Response to Original message
4. Simple. Just like they say. Average ticket totals are down.
Example:

100 people spending $30 each = $3000
150 people spending $25 each = $3750

Total sales are up by $750, but each person is spending less, on average.
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gmoney Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-26-07 05:55 PM
Response to Reply #4
5. but traffic is up 50%!
...but this one goes to 11!


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PeaceNikki Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-26-07 05:58 PM
Response to Reply #5
6. Is that Cafe Press site in your sig yours?
I have one of the oval stickers on my car.

I love it cuz it's subtle. And, when people ask what it means, I love to tell them "FUCK W".
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gmoney Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-26-07 06:30 PM
Response to Reply #6
9. it is mine, but I don't think I'm the only one who came up with the idea
Edited on Mon Nov-26-07 06:35 PM by gmoney
I've not sold many though... not aggressively marketing them, I guess
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Rabrrrrrr Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-26-07 06:00 PM
Response to Original message
7. Just like it says - customers are up 4.8%, spending per person is down 3.5%
Leaves room for about 1.3% higher sales, yes?

c2 = 1.048c1

s2 = 0.965s1

ergo:

s2c2 = 1.011s1c1

Total sales are up 1.1%,





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Deja Q Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-26-07 06:06 PM
Response to Original message
8. Yes and no.
If I charged $50 for a book I wrote, I'd get far fewer takers than if I sold it for $25. Or even $15.

Mind you, in accordance with the same analogy, not nearly as many people care to read anymore so it's a moot point...

I'm off to buy those Tanith Lee books on amazon.com...
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