Kurt Barnard
Kurt Barnard
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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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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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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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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.
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The only way to grow in the retail business is to add yet another 100 stores, another 600 stores. Then someone else will see that you are successful. And that other fellow will do the same. And for a while it is fine, until suddenly there are more stores than the community needs.
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The problem with Target is a problem facing every retailer. The price of gas is coming down, but home heating oil is going to be a major problem, ... A lot of consumers are worried.
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There are a lot of companies out there whose essential business operating concept is past its prime and therefore their comparable sales are on a gradual decline.
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Retailing and consumer spending are a function of a four-letter word -- jobs. And there are no jobs being formed in the United States at the present time. We are in an unfortunate labor climate, one that might be called not at all propitious for retail spending.
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Retailers know that for a lot of consumers, this is a time of uncertainty about their jobs, ... This will make them frugal with their holiday shopping and they will be on the hunt for the best deals out there.
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Remember, there are still over 2 million unemployed workers and over 5 million are on part-time jobs. Christmas will be moderately better simply because last year was so bad. But unless this jobs picture improves, it's hard to say that the retail industry has finally turned the corner.