Kurt Barnard
Kurt Barnard
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plays itself out on Main Street U.S.A. in the form of muted retail sales.
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There's no question that Kmart is in deep trouble, and how that trouble is going to resolve itself remains to be seen,
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It is time that Manhattan got itself its first really splendid discount store, so the sale opens the door to the arrival of Target, or maybe even Wal-Mart.
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The worst part of these results is that they show that the effect of the tax rebate checks has petered out. This is a nightmare in itself for retailers and it doesn't bode well for Christmas. Also, we'll probably see more markdowns now, more than retailers anticipated for the holidays. That will hurt their bottom line.
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While Saks is trying to make itself even more exclusive and pricing its goods even higher, the Neiman Marcus stores are going in the other direction and trying to attract a larger group of consumers. Today's development shows that competition in the luxury space is being ratcheted up a notch.
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From what I've seen, Sears is well underway to making itself into a more efficient and a more pleasant-to-shop retail establishment. It is likely to become a powerhouse in the mass-market arena and perhaps look a little bit like a combination of a large discount store and Kohl's.
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Watch out for this company. It's telling us something. While most retailers sold indistinguishable products, Sharper Image sells exciting and unique things that people want to buy.
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We found out, from talking to consumers and store operators all over the country, that low-dollar items went very fast. Forget about high-end items.
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The potential for Web sales is tremendous and it carries the potential of completely altering and upsetting over the next few years all channels of retail selling.
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With this kind of weather, we've now had this for some days, I think you'll find retail sales will reflect a cautious attitude on the part of consumers,
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We're seeing the consumer back at the discretionary counters and that is good news for the entire industry.
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We're seeing clearance sales that are early by at least three to four weeks. Going back to the beginning of summer they had a lot of inventory on hand and they need to get rid of it, ... Second-quarter earnings are going to reflect the markdowns. Everybody has been caught in the downdraft.
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With Wal-Mart it's still a wait-and watch situation, but Target's news is a little worse. The problem with Target is that its department stores are underperforming.
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Until the unemployment picture improves, consumers will be very cautious about their spending habits. We think the second half of the year could also be difficult for the retail industry unless the job demand improves.