Bloomberg reported today that Staples has released their finances - and their net income has fallen. Staples is a streamlined operation, and I'm guessing that many more retailers will report similar numbers.
With consumers feeling less confident, they are likely to spend less at the register. Frankly, I'm not sure what could be more disconcerting than the devaluation of home values. This will probably have an impact on consumer spending for a long time to come. I heard on the radio today that Moody's doesn't expect housing prices to recover until 2009. Ouch!
I'm sure the strong retailers will do fine, but I wouldn't be surprised if there are some that are forced to close their doors like CompUSA last year.
With consumers feeling less confident, they are likely to spend less at the register. Frankly, I'm not sure what could be more disconcerting than the devaluation of home values. This will probably have an impact on consumer spending for a long time to come. I heard on the radio today that Moody's doesn't expect housing prices to recover until 2009. Ouch!
I'm sure the strong retailers will do fine, but I wouldn't be surprised if there are some that are forced to close their doors like CompUSA last year.
