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Paul Miller
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- There's been an uptick in home sales in recent months as prices plunged. In June, for instance, new home sales increased 11 percent while the number of new homes on the market decreased.
- Although unemployment is still rising and is expected to pass 10 percent early next year, the job-loss rate has slowed considerably as more employers apparently have cut staff as close to the bone as possible.
- As for the fall/holiday season, it would be surprising to see a sudden surge in consumer spending again; sales levels likely will be flat. Consumers are still struggling with lower wages, unemployment and a lack of confidence. So they'll be in no position to spend very much on gifts.
Not Setting the Table
What's more, with store closings up, catalog mailings down, and online advertising and web development spending levels flat for the first time in the internet age, integrated retailers who rely primarily on stores, catalogs or the web for the bulk of their sales aren't setting particularly lucrative or attractive tables for consumers. There are fewer avenues in which to shop, and less unique merchandise out there.
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