Warnings from major retailers hard to ignore

|By:, SA News Editor

Brutal competition between major retailers on pricing could bring holiday sales to a lower level than economists anticipated.

Though many forecasts still show holiday sales improving at a 2.5%-4% clip, the latest round of warnings from Best Buy (BBY), Wal-Mart (WMT), and Target (TGT) are hard to ignore.

Also in play is a "crowding-out" effect as increased consumer spending on automobiles and housing saps the meager 1.5% wage increase the working class saw this year.

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