Retail Getting Slammed

I keep tabs on the what occurs with retail because it is the first sign of consumer weakness, which in my view, gives me a first read into what lies ahead for the media and technology companies, even those solely dependent on enterprise revenues. Doesn't look good. Also, doesn't look good for the online retail names, that is unless the assumption can be made that online is cannibalizing offline sales at an accelerated pace.

From the Wall Street Journal:

U.S. retailers reported some of the weakest sales figures in years for November, which included the Black Friday kickoff to the holiday shopping season.

Gap (GPS) reported a 10% drop in same-store sales, while Macy's (M) fell 13% and Nordstrom (JWN) dropped 16%. Target (TGT) reported a 10% drop, worse than expected, though Black Friday sales were stronger than the rest of the month. But Wal-Mart (WMT) topped estimates on increased store traffic and purchase size.

Comments

[Pipo:]

Herbert Zarkin, CEO of BJ's Wholesale gave a good intervie today.

BJ stock is up 16% in the last year. Fantastic performance from this retail company.

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2008 Dec 04 05:31 PM

[Stephen Ros...:]

And the trash has been all going up. Go figure. Lousy companies with lousy sales being bought that the worst is over. Wrong!

2008 Dec 04 06:53 PM

[CLH:]

For investing I watch the tape and retail stocks are soaring. It seems that most people dont agree with you. The last I heard people were killing each other in order to buy (NY)

2008 Dec 05 07:39 AM