Monday, July 11, 2011
Top Retail Analyst: "I Think What’s Going On ... Is That We Are In A Depression For 80 Percent Of Americans"
CBS station KNX 1070 in Los Angeles reports:
More stores across the U.S. that offer deeply-discounted products are seeing their sales decline after years of growth amid America’s “Great Recession” — and one analyst said on Monday it’s another sign of even deeper downturn.
“I think what’s going on in those stores is that we are in a depression for 80 percent of Americans,” top retail analyst Howard Davidowitz told KNX 1070.
America’s three largest discount chains — Dollar General Corp., Family Dollar Stores Inc. and Dollar Tree Inc. — all recently missed their quarterly earnings targets.
Davidowitz pointed to the weakness of the dollar and a gloomy consumer outlook as some of the factors behind the stores’ slump.
“In those stores, somebody comes in with $12 to do all their shopping,” said Davidowitz. “The person who used to come in with $12 now comes in with $8.”
“In other words, the economy is continuing to be worse, the ... depression continues to explode,” he added.
This reminds me of Joe Biden's statement that "it's a depression for millions of Americans", Wal Mart CEO's statement that Wal Mart shoppers are running out of money, and many top economists' assertion that we're in a Depression.
And see this.