Consumer spending in the US is diverging into two strands as strong growth at high-end stores such as Tiffany contrasts with continuing difficulties for mass-market retailersPersonal spending in the US is diverging into two distinct categories as strong growth at high-end stores contrasts with continuing difficulties for mass-market, low-price retailers.Nearly a year after the US economy returned to growth, corporate earnings reports in recent months have provided consistent evidence of the differing fortunes. At high-end stores such as Neiman Marcus and Tiffany, shoppers are demonstrating confidence and spending with vigour. At the other end of the retail spectrum, consumers are cautious amid economic uncertainties, denting the earnings of groups such as Walmart....On Friday, Tiffany, the luxury jewellery retailer, reported a 9 per cent increase in sales for the second quarter of 2010 over the comparable period a year ago. By contrast, Zale's, a mass- market chain of jewellery stores, has seen its 2010 sales lag behind its comparable figures for 2009. Neiman Marcus, the luxury department store chain, reported a 7.6 per cent jump in revenues for the quarter ended July 31. Earlier this month, Walmart reported that same-store sales for the second-quarter of 2010 had declined from the previous year's levels.
Personal spending in the US is diverging into two distinct categories as strong growth at high-end stores contrasts with continuing difficulties for mass-market, low-price retailers.
Nearly a year after the US economy returned to growth, corporate earnings reports in recent months have provided consistent evidence of the differing fortunes. At high-end stores such as Neiman Marcus and Tiffany, shoppers are demonstrating confidence and spending with vigour. At the other end of the retail spectrum, consumers are cautious amid economic uncertainties, denting the earnings of groups such as Walmart....On Friday, Tiffany, the luxury jewellery retailer, reported a 9 per cent increase in sales for the second quarter of 2010 over the comparable period a year ago. By contrast, Zale's, a mass- market chain of jewellery stores, has seen its 2010 sales lag behind its comparable figures for 2009.
Neiman Marcus, the luxury department store chain, reported a 7.6 per cent jump in revenues for the quarter ended July 31. Earlier this month, Walmart reported that same-store sales for the second-quarter of 2010 had declined from the previous year's levels.
Meanwhile, it figures that the rich are still out there spending, or maybe it is just more are spending than last year...which the stats don't talk about. Is it 10% more than a number that was reduced by 10% previously? That wouldn't even bring it back to flat.
Not complaining about the EuroTrib data, just about the ability for picking points to make a story. Never underestimate their intelligence, always underestimate their knowledge.
Frank Delaney ~ Ireland
