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Retail storm clouds continue to gather

  • The slash in profit guidance from American Eagle Outfitters (AEO -3.2%) earlier this week seems to have set off a ripple effect that is still spreading.
  • Yesterday, it was mall-based retailers which took it on the chin and today Deutsche Bank is out with lowered comparable-store sales estimates for Dick's Sporting Goods (DKS -1.2%), Kohl's (KSS -1.2%), Target (TGT -0.4%), J.C. Penney (JCP -3.2%), and Staples (SPLS -1.4%).
  • Boutique firm Cleveland Research - which has a solid history of calling out moves in Wal-Mart's (WMT -0.8%) sales trends - is reported to have turned negative on the retailing giant.
  • The S&P Retail ETF (XRT) is off 1.7% after falling back yesterday too.
Comments (6)
  • Anne Bonney
    , contributor
    Comments (98) | Send Message
     
    Went to a major, upscale mall in the middle of America-one of the most financially stable areas left. The amount of non-seasonal and seasonal merchandise for sale was noticed to be less. Shelves were arranged to looked appealing, but were actually under stocked. Noticed this same thing at a discount retailer. Certain restaurants had fewer customers at peak serving hours. What recovery? Things looking worse, not better, not the same. Much worse.
    7 Aug 2013, 01:35 PM Reply Like
  • Aristotle2k
    , contributor
    Comments (214) | Send Message
     
    Thats a pretty insignificant sample if you ask me
    7 Aug 2013, 02:01 PM Reply Like
  • SoCalNative
    , contributor
    Comments (496) | Send Message
     
    I hear ya. I live by two major, well-known upscale malls and both of them have more people milling around than buyers with shopping bags. Who are all these people with shiny, new part-time retail and food service jobs serving?
    7 Aug 2013, 02:03 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1095) | Send Message
     
    You may be mistaking a paradigm shift for a leading indicator. Malls have been dying for the past 10 years.
    7 Aug 2013, 04:18 PM Reply Like
  • SoCalNative
    , contributor
    Comments (496) | Send Message
     
    That's a good point, Kyle. I hadn't thought of that.
    7 Aug 2013, 04:24 PM Reply Like
  • Tack
    , contributor
    Comments (13576) | Send Message
     
    Gee, just been in hotels, malls and many restaurants in Northern California, Florida, Delaware, and Maryland, and they were all packed, especially the restaurants. Most of the merchants I chatted with told me business was as good or better than before the realty bubble popped.

     

    Sure hasn't looked like any slowdown to me.

     

    I suspect the retail numbers, if light, just reflect the usual momentary unpredictables. Soon, they'll be telling us it's going to be a poor school season, then an iffy Christmas season. Happens almost every year. Then, lo and behold, it doesn't happen.
    7 Aug 2013, 02:30 PM Reply Like
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