Fred Harteis Business News - Here's a clue: Consumers are picky, not dead
Fred Harteis Business News - 'Tis the season to be jolly? Maybe not for
Home Depot and Wal-Mart, two of the three retail bigwigs that reported their results on Tuesday.
But things are looking up
for Target.
As retailers near the final
countdown to "Black Friday," all eyes are squarely focused on the consumer.
Black Friday, or the day
after Thanksgiving, is the traditional annual marker for the "unofficial" start to holiday shopping. For retailers, November
and December are critical because together the period accounts for as much as 50 percent of their profits and sales.
Moreover, since consumer
purchases fuel two-thirds of the economy, these two months provide a vital temperature-taking of the overall health of the
nation's economy.
Any significant slowdown
in consumer spending immediately raises concerns that the economy as a whole will likely follow.
So how do things look so
far? Despite the retail picture being a little muddy this year, analysts for the most part seem to agree that consumers are
not yet shying away from shopping.
They're just becoming more
cautious and more picky about where they shop.
Home Depot, the nation's
largest home improvement retailer, is especially hard-hit by the dip in home values.
As home prices cool and
interest rates creep up, Americans have backed away from refinancing their homes. The nation's housing market has thus far
made consumers feel wealthier, acting as a buffer against the run-up in gas and energy prices while padding their wallets
with a little extra cash to spend on clothes, shoes, eating out and other discretionary purchases.
With interest rates rising,
people don't have the same options to pull cash out of their homes. Industry watchers say this is affecting the psychology
of the consumer.
Source: Cnn.com
About Fred Harteis: Fred Harteis leads Harteis International. Fred Harteis has a background in agriculture and has created many successful business ventures.
