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08-17-2010, 08:44 PM
It's deflation, not inflation.
Some stores finding deep discounts aren't enough
Major stores report profits, but sometimes even deep discounts aren't enough
Anne D'Innocenzio, AP Retail Writer, On Tuesday August 17, 2010, 5:00 pm EDT
NEW YORK (AP) -- A dollar for a 40-ounce bottle of ketchup? Yawn. Four bucks for a 12-pack of Coke? No sale.
Even deep discounts on everyday items don't seem to be enough to get Walmart shoppers to bite these days, and other chains are worried Americans won't be in the mood to spend in the months ahead, which are critical for those companies.
On Tuesday, quarterly financial results from retailers including Home Depot and Abercrombie & Fitch showed that profits are rising because retailers are cutting costs and keeping their inventories lean.
But with the economy slowing once again and consumer confidence falling, they expect less out of the rest of the year, and they already have to push harder to get shoppers to buy.
Walmart hopes basics like underwear and socks will bring in financially strapped shoppers. It's also stocking smaller packages for the days leading up to when customers receive their government assistance checks, and need to stretch their last few dollars.
Teen clothes store Abercrombie & Fitch, which slashed prices on some of its jeans by 40 percent to get people to buy for the back-to-school season, is expected to keep cutting prices through the fall.
At Home Depot Inc., sales are being driven by small repair projects, not big renovations, and weak spending has caused it to cut revenue forecasts for the year. It has added more signs in stores pitching deals like $19 fiberglass six-panel doors........
http://finance.yahoo.com/news/Some-stores-finding-deep-apf-2686642153.html?x=0
Some stores finding deep discounts aren't enough
Major stores report profits, but sometimes even deep discounts aren't enough
Anne D'Innocenzio, AP Retail Writer, On Tuesday August 17, 2010, 5:00 pm EDT
NEW YORK (AP) -- A dollar for a 40-ounce bottle of ketchup? Yawn. Four bucks for a 12-pack of Coke? No sale.
Even deep discounts on everyday items don't seem to be enough to get Walmart shoppers to bite these days, and other chains are worried Americans won't be in the mood to spend in the months ahead, which are critical for those companies.
On Tuesday, quarterly financial results from retailers including Home Depot and Abercrombie & Fitch showed that profits are rising because retailers are cutting costs and keeping their inventories lean.
But with the economy slowing once again and consumer confidence falling, they expect less out of the rest of the year, and they already have to push harder to get shoppers to buy.
Walmart hopes basics like underwear and socks will bring in financially strapped shoppers. It's also stocking smaller packages for the days leading up to when customers receive their government assistance checks, and need to stretch their last few dollars.
Teen clothes store Abercrombie & Fitch, which slashed prices on some of its jeans by 40 percent to get people to buy for the back-to-school season, is expected to keep cutting prices through the fall.
At Home Depot Inc., sales are being driven by small repair projects, not big renovations, and weak spending has caused it to cut revenue forecasts for the year. It has added more signs in stores pitching deals like $19 fiberglass six-panel doors........
http://finance.yahoo.com/news/Some-stores-finding-deep-apf-2686642153.html?x=0