This page has been archived and commenting is disabled.

US Retailer Hell In One Chart

Tyler Durden's picture





 

The chart below from the WSJ, summarizes perfectly the hell that US retailers find themselves in. In brief: sales down and inventories soaring, means liquidation sales have to surge, while profits and cash flows crater.

From WSJ:

 Simeon Siegel, an analyst with Nomura Equity Research, looked at the inventory carried by those and other specialty-apparel retailers at the end of the third quarter and compared it with his projections for the chains' fourth quarter sales. He found that in most cases inventory growth far outpaced sales growth. Normally, the two should be growing about the same. "The ratios are the worst we have seen in quite a while," Mr. Siegel said.

...

 

"The worry now is about demand falling, not going through the roof," Mr. Johnson said.

 

Abercrombie ended the third quarter with inventory up 22% from a year earlier. Yet Mr. Siegel of Nomura predicts the retailer's sales will fall 14% in the fourth quarter.

...

 

Marshal Cohen, the chief industry analyst for the NPD Group, said he spotted signs throughout the weekend that stores were overstocked, including goods

stacked high up on shelves and ample merchandise in storerooms.

 

"When the most common sizes of popular items don't sell out, that's a problem," Mr. Cohen said.

Yes, it is - it means the consumer is fully tapped out courtesy of Bernanke's 5 year (and ongoing) wealth transfer experiment from the middle class to the 0.1%.

Gap and L Brands have had strong years, with their shares up more than 30%. But apparel sales have been suffering as shoppers direct their attention elsewhere. Many consumers, when they are spending at all, are plowing money into their homes and buying new cars.

They don't call it "fun-da-mentals" for nothing. And with Uncle Sam providing all the car loans one could ever need, why buy clothes when you can live naked (or simply rent clothes as they do in Europe) in their NINJA loan purchased (thanks to the government's generosity) Government Motors.

Finally, don't worry about any of the above: surely there is a weather excuse for all of it.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 12/04/2013 - 10:25 | Link to Comment TruthInSunshine
TruthInSunshine's picture

No problem, retailers and etailers can just rent out excess inventory, like Mud Jeans in Europe is doing (crotch crabs not included if one is lucky).

 

A Cash-Strapped Europe's Latest Craze: Rented Clothes

Meet Anouk Gillis who is just such a person. As the WSJ reports, Anouk Gillis often sports a pair of organic-cotton jeans she ordered online. But she doesn't actually own them. Rather than buying the pants, which retail for around €100 ($135), Ms. Gillis signed a 12-month lease with their designer, the small Dutch fashion label Mud Jeans. The terms: a €20 deposit and monthly installments of €5.

 

Wed, 12/04/2013 - 10:33 | Link to Comment Popo
Popo's picture

So how long before Obummer bails out Abercrombie & Fitch?

Wed, 12/04/2013 - 10:40 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The Obamas are more of an Old Navy family.

Wed, 12/04/2013 - 10:47 | Link to Comment Grinder74
Grinder74's picture

I thought it was J. Crew--which is funny because they rarely have any black twigs, er models, in their catalogs.

Wed, 12/04/2013 - 11:38 | Link to Comment Vegamma
Vegamma's picture

The timing of the bailout is uncertain, but it helps to remember the sequence of events.

1. CEO sees writing on the wall, negotiates bonuses for board, which in turns pays CEO special bonus to retain him, cover story is JCPenny is trying to lure him away.

2. Paulson lays out the plan for the connected ones who first buy stock.

3. Obummer floats "bags for rags" stimulus which offers bags of cash for hipsters to trade in old clothes for new A&F only. Stock soars, the connected sell.

4. Obummer switches plan to higher clothing tax to pay for Obamacare. Stocks and bonds crater.

5. Connected ones buy debt at 20 cents on the $.

6. Bailout, consisting of full payout to bondholders and handing equity to an Italian company is announced.

7. Wash, rinse, repeat.

Wed, 12/04/2013 - 12:11 | Link to Comment NotApplicable
NotApplicable's picture

Surely Maduro can help out with that inventory problem.

Wed, 12/04/2013 - 14:36 | Link to Comment Never One Roach
Never One Roach's picture

Retailers need to convert themselves into Big Banks, cry "it's the End of the World" hire a Hank look-alike and beg for another TARP.

Wed, 12/04/2013 - 11:08 | Link to Comment Freddie
Freddie's picture

I got spam email from Aeropostale, US whatever - one of those young hip clothing stores like Old Navy.  I forget which one.  I had no interest but wanted to see if they were panicking and giving stuff away.

They had flannel shirts for $39.99!  A relative called wanting to buy me almost the same shirt at WMT for $6.99. I said no thanks.  I have a lifetime of shirts.   Who the hell buys cheezy flannel shirts for $39.99?  Trust fund hipsters in Bushwick/Williamsburg? 

Big business supporting Obama and now the Repubs going back to talking about amnesty?  F all of them.

Wed, 12/04/2013 - 11:17 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

so let me get this straight...............a relative called you and asked you if you wanted a wal-mart shirt for $6.99? and this was the exact same shirt that you got spammed in a email??

damn fred, you are watching to much TV........

you already admitted you shop at walmart in a previous thread.......I think I will stick with that explanation.........you are just a walmart serf shopper

 

Wed, 12/04/2013 - 12:37 | Link to Comment Deo vindice
Deo vindice's picture

For several years my wife and I have purchased much of our clothing at a very well-run second-hand store. Often they have brand new clothes with the tags still on them for a small fraction of the price.

The whole "designer clothes" industry is just another insidious way to part a fool from his/her money.

When people brag about how much (as in high price) they spent on some clothing article, they fall into the category of 'fool'.

Wed, 12/04/2013 - 14:26 | Link to Comment Kobe Beef
Kobe Beef's picture

Never pay retail.

Wed, 12/04/2013 - 17:58 | Link to Comment RSloane
RSloane's picture

I bought a pair of designer linen shorts at Goodwill for .50$  which were selling in stores for 95$. They had never been worn and the original tag was still in them. I checked online when I got home and sure enough that was the price they were being sold for. I also bought several pieces of clothing for my newborn at a church bazaar, knowing full well that whatever I bought would be quickly outgrown. I got an entire stack of brand new newborn T-shirts for a dollar.

Grats to you and your wife, Deo, that's the smart way to shop.

Thu, 12/05/2013 - 00:38 | Link to Comment DaveyJones
DaveyJones's picture

I thought designer clothes were a good way to increase the odds of children getting burned in a factory 

Wed, 12/04/2013 - 11:21 | Link to Comment Hedgetard55
Hedgetard55's picture

The hipsters are in Sunnyside and Astoria now.

Wed, 12/04/2013 - 17:44 | Link to Comment Skateboarder
Skateboarder's picture

You want to see ridiculous? See this:

http://plusskateshop.com/Products.asp?dbCategoryID=30

Wed, 12/04/2013 - 19:14 | Link to Comment minosgal
minosgal's picture

lol

Flavor Slaves

Wed, 12/04/2013 - 10:24 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

wtf... I thought the adjusted jobs report by ADP fixed everything?!?

Wed, 12/04/2013 - 10:25 | Link to Comment NoDebt
NoDebt's picture

It did.  It did.  You can stop reading now.  All fixed.

Wed, 12/04/2013 - 17:38 | Link to Comment 101 years and c...
101 years and counting's picture

the bulls have been cheering bad....without taking a second to think of the consequences.  they want bad, they're gonna get it.  shoved right up their ass.

Wed, 12/04/2013 - 17:54 | Link to Comment Jumbotron
Jumbotron's picture

Somebody from the Hedonics Department will clean ALL this up in a jiffy.....**poof**  .....   well......WHADDAYA KNOW ??   Best retail figures since 2006.

Wed, 12/04/2013 - 10:24 | Link to Comment gafgroocK
gafgroocK's picture

 

 

I can't even come up with a witty snarc on this.

Wed, 12/04/2013 - 10:28 | Link to Comment Grande Tetons
Grande Tetons's picture

"When the most common sizes of popular items don't sell out, that's a problem

I am guessing they have plenty of double extra large hanging around. 

Wed, 12/04/2013 - 12:46 | Link to Comment Singelguy
Singelguy's picture

You forget we live in an upside down world. Now all the XL and XXL have been sold out to the FSA.

Wed, 12/04/2013 - 18:08 | Link to Comment RSloane
RSloane's picture

Yep. That's exactly right. Try to go shopping for petite clothing that does not look like it was designed by a high school cheer leader. Yet there are aisles of clothing designed for the 200 pound + crowd.

NM I just saw your name, Singleguy. My bad.

Wed, 12/04/2013 - 10:24 | Link to Comment threeputting
threeputting's picture

The government shutdown is to blame.

Wed, 12/04/2013 - 10:27 | Link to Comment toady
toady's picture

George Bush hates black people.

Wed, 12/04/2013 - 10:32 | Link to Comment falak pema
falak pema's picture

He should never have painted Laura in black !

Wed, 12/04/2013 - 10:30 | Link to Comment Jimmy Carter wa...
Jimmy Carter was right's picture

Bring the taper bitcheez, gold to 1000, speed up the reset.

Wed, 12/04/2013 - 10:30 | Link to Comment max2205
max2205's picture

Blizzard of 2013 coming just in time for the exuses for misses.    How do they do that?

Wed, 12/04/2013 - 17:51 | Link to Comment crazyroadlizard
crazyroadlizard's picture

Don't forget the shortened shopping season with Thanksgiving so late in the month - even though Black Friday started on Wednesday!

Wed, 12/04/2013 - 10:26 | Link to Comment Chupacabra-322
Chupacabra-322's picture

The sound of an Empire deflating.

Wed, 12/04/2013 - 10:30 | Link to Comment mess nonster
mess nonster's picture

Deflating is right. This is what deflation looks like.

Wed, 12/04/2013 - 10:45 | Link to Comment Bobbyrib
Bobbyrib's picture

Stagflation. With deflation prices actually go down and the consumer would have more buying power. Bernanke is setting (through QE/creating inflation) higher prices for products people need.

Wed, 12/04/2013 - 10:49 | Link to Comment screw face
screw face's picture

Hyper Stagflation is baked in .......Dudes

Wed, 12/04/2013 - 12:42 | Link to Comment Variance Doc
Variance Doc's picture

Wrong!  Deflation is a consequence of a contraction in the money supply (and "velocity").  DO NOT confuse this with deleveraging, which is a different thing!

Wed, 12/04/2013 - 12:58 | Link to Comment Singelguy
Singelguy's picture

But the money supply IS contracting for the average consumer. Higher taxes, higher health insurance premiums, lower wages. If the consumers have no money to buy, prices must drop, or businesses will sell less and will ultimately have to close. Money supply is only growing for the banks who are pumping stock prices higher.

Wed, 12/04/2013 - 13:23 | Link to Comment Variance Doc
Variance Doc's picture

Great - retarded Econ 101.  You'll have a lot of students in the USSA.

Wed, 12/04/2013 - 17:56 | Link to Comment Nigh Eve
Nigh Eve's picture

True.   Regardless of what the correct terminology is, a weaker currency (a consequence of QE) works against any growth in the average person's disposable income.   

Wed, 12/04/2013 - 10:31 | Link to Comment falak pema
falak pema's picture

Biden loves chop suey; maybe we should too.

Wed, 12/04/2013 - 10:42 | Link to Comment madcows
madcows's picture

The collapse of nations occurs at a rather slow rate when viewed against a human lifespan.  However, as national collapses go, I'd say this is on the order of the dude's crash from the car racing movie, release 52 or whatever it is.  I'll have to go ask the neighborhood tweens what the name is, but in general, rather fast and fiery.  In fact, I think this collapse is so cataclysmic that it will leave a sonic boom (depression) around the world.

Wed, 12/04/2013 - 10:27 | Link to Comment buzzsaw99
buzzsaw99's picture

Other retailers I see not jack shit for inventory and thus declining top line is imminent. Trying to buy shoes for a bunch of kids, looked at every store, found very little in any of their sizes so zappos here we come. brick and mortar is dead. sales tax revenue will suffer, thus munis not such a good bet either.

Wed, 12/04/2013 - 10:34 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Some of my best pairs of casual shoes and boots were made in the UK or US.

Their equivalents today (even same brand) are made in China.

It's like going from cow hide to dog skin (or more likely, rubbish synthetic material), and it shows, and the new pairs last a year or even less if used heavily, while you can't wear the old pairs out.

Even Dr. Marten & Red Wings now have some of their "top tier" products made in China.

wtfTF??

Wed, 12/04/2013 - 10:44 | Link to Comment buzzsaw99
buzzsaw99's picture

very true for adult shoes. kid shoes never fit for more than 6 months in any event.

Wed, 12/04/2013 - 11:26 | Link to Comment MachoMan
MachoMan's picture

Reminds me of the pair of vasque sundowners I got in the late nineties...  arguably the best hiking boots ever made...  quality craftsmanship full leather construction from italy.

Fast forward a few years...  they're now made in china and subject to more than a few negative reviews.  oops.

Wed, 12/04/2013 - 11:55 | Link to Comment PT
PT's picture

Aside from your gold stash and your gun stash and your silver stash and your food stash, it may be handy to have a leather stash and a wool stash and a cotton stash and spare boot making / clothes making machines laying around.  After Uncle Sam decides to bomb the Chinese clothing factories, that stuff may be hard to come by, as will finding anyone who knows anything about manufacturing.  Don't forget to keep the moths away from your wool stash.  Coming to think of it, a Chinese made clothing / shoe stash might be "cheaper" ...

Wed, 12/04/2013 - 12:14 | Link to Comment NotApplicable
NotApplicable's picture

Boots I can see, but buddy, there's enough clothing already in the US to keep us from being naked for decades.

"I'ma gonna pop some tags..."

Wed, 12/04/2013 - 17:47 | Link to Comment Uncle Remus
Uncle Remus's picture

I've heard the same about Vasque. I haven't had a pair since I left the moutains, but they used to be excellent.

Wed, 12/04/2013 - 18:12 | Link to Comment mt paul
mt paul's picture

 Macho man ,,Have to disagree with you a bit

i have used Vasque Montana block

3 quarter steel shank hiking boots for years [ 40+]

they are the best of the vasque line...

the sundowner is a nice all around hiking boot 

but not really ridged enough for hard mountain work...

resoled my first pair 2 times

broke my heart when i had to retire them 

the company rep gave me a pro deal on my present pair

the best boot on earth...

stop at the top

Wed, 12/04/2013 - 11:02 | Link to Comment J Pancreas
J Pancreas's picture

I'm an Allen Edmonds convert. Great quality, US made, matching belts.

 

Frye boots for the wife, also US made were an easy buy when comparing similar priced made in China Ugg leather boots.

Wed, 12/04/2013 - 10:53 | Link to Comment screw face
screw face's picture

+1 munis

 

yup ..... that's how it looks over here in #Nucleartracktown, lot's of stinking 'PAPER'.

Wed, 12/04/2013 - 10:26 | Link to Comment Zero Point
Zero Point's picture

Time for lootin season.

I'll go rent a sledge hammer, using a credit card.

Wed, 12/04/2013 - 10:25 | Link to Comment SheepDog-One
SheepDog-One's picture

80" LG's for $5 for everyone! 

Wed, 12/04/2013 - 10:29 | Link to Comment becky quick and...
becky quick and her beautiful mouth's picture

my family is not rich, we pull in around $100k a year. yeah, we do okay, but not rich. the reason i mention this is that most of our friends are in the same income bracket. 

 

without exception, almost al of our friends are spending ALL of their money on insurance, food, gas, electric & water bills, and maybe a car or a boat. discretionary day-to-day spending is almost non-existant.

 

good luck with the economy when people in my situation are spending, literally, NOTHING on retail purchases.

Wed, 12/04/2013 - 10:33 | Link to Comment max2205
max2205's picture

Add in new aca costs next year and 60% of the us could technically qualify for bankruptcy

Wed, 12/04/2013 - 10:32 | Link to Comment mess nonster
mess nonster's picture

... a boat? Are some of your friends boat people? As in, do they live on a boat?

Wed, 12/04/2013 - 10:36 | Link to Comment becky quick and...
becky quick and her beautiful mouth's picture

northern wisconsin, there's a lake every 12 feet. owning a a boat here is like having an ez-pass in boston.

Wed, 12/04/2013 - 10:39 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Boats are cruel burdens in hard times.

When the 2008 amuse-bouche hit, noveau paper-riche people were sinking their 1/2 million dollar weekenders all over the Gulf Coast, in hopes of an insurance bailout.

The boats were washing up everywhere with perfectly symetrical holes riddled throughout their hulls. Must've been hail damage

Wed, 12/04/2013 - 11:22 | Link to Comment smacker
smacker's picture

Could have been caused by gold falling through the hull ;-)

Wed, 12/04/2013 - 12:48 | Link to Comment Deo vindice
Deo vindice's picture

100k isn't 'rich'? Obviously everything is relative.

Wed, 12/04/2013 - 18:05 | Link to Comment Burnbright
Burnbright's picture

Depends on where you live and what your standard of living is. My wife and I both work making 70k, more than likely after taxes we see 50k. We have two kids in day care so we have an extra 1200 dollars in expentures (and that is cheap day care) but I feel poor. A good home costs roughly 300k in my area. We almost never take vacations, mostly because I never have time off, I work tues - sat, her mon - fri, so that we pay $300 less in day care each month so we only have 1 day off together each week. Our rent is cheap thank god or we wouldn't be able to save a dime. We got lucky though, found someone through a friend to rent from otherwise we would be paying $300 more for a house 2/3 the size, in a shitty neighborhood. $100k these days is middle class. $300k+ might be rich

Thu, 12/05/2013 - 00:52 | Link to Comment DaveyJones
DaveyJones's picture

100 is definitely not rich in many major metro or suburban areas. Add some kids and college and the game is over. There is no discretionary income left. Peak oil, peak debt, inflation, and a corrupt overpriced medical system (now mandatory) do not help. This middle age generation is the one to see the grand transition. Old enought to remember the old world their parents lived in, young enough to drop dramatically in real world living standards. Lucky us  

Wed, 12/04/2013 - 11:24 | Link to Comment JMT
JMT's picture

The cost of living has soared even for a single person in the NYC area (not in any of the gentrified neighborhoods of the 5 boros ) you need to be making around $100,000 a year.. There is federal, state & local tax (if you live in the city) but transportation to get to work can easily exceed $200 a month for train + subway and rents in the suburbs start in the $2,000's per month and go to obsene levels the closer to get to the nouveau riche trendy areas of Brooklyn & Queens... 

Wed, 12/04/2013 - 11:38 | Link to Comment HulkHogan
HulkHogan's picture

Here on ZH, we all have boats. Funny enough, I lost mine in an unfortunate accident.

Wed, 12/04/2013 - 12:24 | Link to Comment TheKinski
TheKinski's picture

We are in the same boat as you.

Zero discretionary income, we live extremely frugally and I have our budget/cash flow down to a science.

No cable, no smart phones, no entertainment budget.  And we make 85-95k.

I have 1 pair of jeans that I can wear in public.  The rest have holes or are full of grease and oil from doing my own car repairs.  My hands still hurt from changing a water pump last week in my garage until 1am as I needed my vehicle the next day for work.

Every month whilst paying the bills, I cannot believe how expensive it is to just eek out a living. 

Yeah, I know.  Cry me river, right?  I'm just sayin' that there is something wrong when you make a "decent" salary, yet are struggling to just stay afloat.

Wed, 12/04/2013 - 18:06 | Link to Comment quasimodo
quasimodo's picture

Sure nice to see a few others here in the same boat we are, while we are on boats-sold ours three years ago. Love boating but was getting to the point of a 10k$ boat that got about 20 hours a year on her, you do the math.

Like you kinski, I also do what repairs I can when time allows, and have one good pair of jeans for "going out". With three kids, it's just insane how much crap they go through when they hit a growth spurt, and yes my head spins when I see what we spend on stuff every month. We do have a "fun" budget but it's very small and allows about one outing per month if lucky. 

I keep telling myself be thankful for what you have; food, shelter and good family/ friends, but damn it's hard when some of those friends live like kings and you wonder where the heck it comes from.

 

Wed, 12/04/2013 - 18:08 | Link to Comment Burnbright
Burnbright's picture

If you are that hard pressed I would just move. Easier said than done, and trust me I know. But if I could convince my wife to I would just move somewhere it was cheaper to live. We love where we live which is why I think neither of us would move atm, so if that is the case I understand, but sometimes I still wonder why not move where my cost of living would be less than half what it is here. 

Wed, 12/04/2013 - 18:10 | Link to Comment lakecity55
lakecity55's picture

Dear TK,

My Plan is working!

Wait until I decree CommieCare (TM) at gunpoint! You will have No Money At All!!!

Hahhahahaha, motherfucker!

I hope soon you and all ZH will be sucking my cock for food, hahahahha!

(signed)

Backdoor Barry and Reggie.

Wed, 12/04/2013 - 13:18 | Link to Comment AurorusBorealus
AurorusBorealus's picture

I won´t say precisely how much I am currently making in USD, but let us just say that it is a fraction of 100K.  I have plenty of discretionary income.  I buy good wine whenever I want, eat at restaraunts often, donate a nice chunk of my income to local charities, have a fine motorcycle, and hopefully will soon be purchasing between 10 and 25 acres of land to start the construction of a house.  Of course, I don´t live in the United States any more.  Left 1 and a half years ago for South America... something to think about...

Wed, 12/04/2013 - 18:14 | Link to Comment Burnbright
Burnbright's picture

By your comments I would also guess you don't have kids, might be wrong, but you talk like a free person with no attachments. 

Wed, 12/04/2013 - 18:15 | Link to Comment gearbaby
Thu, 12/05/2013 - 00:54 | Link to Comment DaveyJones
DaveyJones's picture

save on heating costs

sunrise and sunset pretty steady

Wed, 12/04/2013 - 14:39 | Link to Comment PlausibleDenial
PlausibleDenial's picture

I used to make over 100K USD as a financial advisor.... then I started reading ZH about 3 1/2 years ago.  I now have no clients hence no income..... Apparantly I have been a bear far too long... I don't  have health insurance, my car needs work, I am sellling all kinds of shiit I have accumulated over the years and have not used, my girlfriend is getting pissed thus I am not getting laid....

Fuck you Bernanke.... One day you cocksucker

 

Wed, 12/04/2013 - 18:24 | Link to Comment stocktivity
stocktivity's picture

People in "my situation" don't have boats for day to day spending. Then again, one of my favorite songs is Garth Brooks "Friends in Low Places".

Wed, 12/04/2013 - 10:26 | Link to Comment krispkritter
krispkritter's picture

In a related report, the Administration has just moved Christmas to January 25th.  Citing an error in it's reporting model, sales attributed to 'Holiday Shopping' will now be calculated from 11/25 to the following 1/25.  Negotiations continue with the Easter Bunny to extend the season next year...

Wed, 12/04/2013 - 18:29 | Link to Comment stocktivity
stocktivity's picture

Wow...and the Republicans went along???

Wed, 12/04/2013 - 10:29 | Link to Comment Billy Sol Estes
Billy Sol Estes's picture

Abercombie and Fitch are still open?

Wed, 12/04/2013 - 10:30 | Link to Comment Tsar Pointless
Tsar Pointless's picture

Yeah. I heard they split-up, hence the reason for your using "are" instead of "is" in your comment.

Wed, 12/04/2013 - 16:08 | Link to Comment Billy Sol Estes
Billy Sol Estes's picture

Or 'are' as in groups of people working there and their numerous outlets.

Wed, 12/04/2013 - 12:56 | Link to Comment Agent P
Agent P's picture

I've bought exactly one A&F product in my life, and that was a giant coffee mug with a full four finger D-handle I purchased in the early 90s...still have it...it's my go-to hot chocolate mug after I shovel snow.  Is this relevant? No, but it's a pretty fucking awesome mug. 

Wed, 12/04/2013 - 10:29 | Link to Comment Tsar Pointless
Tsar Pointless's picture

There are two people for whom I am buying gifts this year, and they would be my two great-nephews.

I myself need nothing at this point, so nothing for me until after the New Year, when I can probably get new dress shirts and pants for 50% less than they are now.

I love the smell of a deflationary depression in the morning!

Wed, 12/04/2013 - 10:35 | Link to Comment Calculus99
Calculus99's picture

Becky, I've been making the same point here in the UK but the crux of the matter is the EXPONENTIAL.

Few seem to realise that you can't have 3%-7% (after inflation) annual rises in Ultities-Housing-Food-Transport (even Sky TV) for the past SEVERAL years without the numbers getting too large. Case in point is the massive political row here in the UK about rising energy costs. Why didn't they complain so much 1-3 years ago? Because the EXPONENTIAL hadn't get caught up, but now it has...

So if I was a retailer of clothes/toys/gadgets, basically anything that's not needed to live I'd be extremly worried about the next few years and the EXPONENTIAL is only going to have a greater effect.

So want a new pair of Levis? Get saving and you can have them for Christmas, 2015!

Wed, 12/04/2013 - 10:36 | Link to Comment 10mm
10mm's picture

ill be at JC Pennys 1.97 rack with loose change jar. Coins were already checked.

Wed, 12/04/2013 - 10:45 | Link to Comment TruthInSunshine
Wed, 12/04/2013 - 17:50 | Link to Comment Uncle Remus
Uncle Remus's picture

wurd

Wed, 12/04/2013 - 11:08 | Link to Comment toady
toady's picture

They're closing the JCP Outlet store here in AZ and the prices are hitting rock bottom. You're forced to dig through piles of Chinese crap, but there's some good shit in there occasionally. I found some Levi's, real Levi's, with the heavy-duty fabric, not that cheap faux blue jean material that splits & shreds. $10 a pair, regular price was over $50.

I say get any good stuff you can now. Sure, prices may deflate more, but all that will be left at those prices will be low quality knock-offs.

The JCP Outlet no longer has any Levi's in my, or my boys, sizes ;)

Merry Christmas!

Wed, 12/04/2013 - 10:42 | Link to Comment fuu
fuu's picture

All is well in the Land of Rape and Honey.

Wed, 12/04/2013 - 10:47 | Link to Comment B2u
B2u's picture

Weather?  Any negatives are due to sequester.

Wed, 12/04/2013 - 10:50 | Link to Comment Bobbyrib
Bobbyrib's picture

I was dumb enough to give some retailers my email address and now I keep getting emails providing discounts for shopping. Retail companies better start cooking the books now if they're going to make earnings.

Wed, 12/04/2013 - 10:54 | Link to Comment screw face
screw face's picture

I LOVE ZH

Thu, 12/05/2013 - 00:57 | Link to Comment DaveyJones
DaveyJones's picture

it means everything just to know how many others are pissed off and struggling.

Wed, 12/04/2013 - 10:56 | Link to Comment nbsharma
nbsharma's picture

Seems like Peter Schiff will be right again. There won't be a tapering - if anything, the Fed will *increase* QE.

Wed, 12/04/2013 - 18:34 | Link to Comment stocktivity
stocktivity's picture

A 20% correction in the stock market and you'll start hearing rumors of a QE5 with Janet buying stocks. Have to keep those 401K's inflated so the sheepie keep spending.

Wed, 12/04/2013 - 10:57 | Link to Comment Bobbyrib
Bobbyrib's picture

Relevant: https://www.commondreams.org/headline/2013/11/30

Bangladesh Garment Factory Ablaze As Worker Anger Boils

LOL. The factory made clothes for Gap and WalMart.

Wed, 12/04/2013 - 10:59 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

When I was growing up, going to a brick and mortar store was a very big deal; since that time, means of entertainment have profligated in so many different ways that going to an actual store is about on par with getting a root canal from a 90 year old dentist with an 80 year old dental assistant.  JC Penny - did you hear that?....

Wed, 12/04/2013 - 11:01 | Link to Comment Bobbyrib
Bobbyrib's picture

Some of these retailers run skeleton crews (profit margins), so when you go there you have to wait a very long time to purchase your product. I just walk out.

Wed, 12/04/2013 - 11:11 | Link to Comment monad
monad's picture

Consider this for a moment.

Despite the vigorous activities of the foreign and domestic enemies of the United State, we are still far and away the largest consumer market on the planet and despite the aggression from Washington DC, Chicago and London, our industrial base is still as large as China's.

The rise of MNCs with wealth comparable to nations is nothing new. For instance the British and French colonial corporations. They are well developed political instruments.

Instead of one sided trade agreements permitting lying, racist, genocidal dictators like Mao and Netanyahu to assault and plunder America's middle class, declare American youth second class citizens in our own educational institutions and price education out of reach, and impose unilateral tariffs crippling exports, what a government of, for and by Americans would have done is restrict access to our consumer market to only the nations that uphold human rights similar to what we aspire to. This is what Abraham Lincoln did. So did Mao. So did Putin. But instead the traitors sold us out for their own profit (Biden, career politician - 60mm before VP) and absurd ideals about what other people should be doing.

So despite the government legalizing slavery and transferring the wealth of the United States into the hand of foriegn oligarchs, consumers aren't also handing over their savings in exchange for cheap junk with low thread counts being served by foreign owned trading posts? They are all foreign owned, for reasons of legal, tax and government loan advantages. Consumers have to do what their worthless phony representatives have utterly failed to do and vote against this usurpation with their dollars and their feet. I don't mind contributing to the economic development of others, but not when it comes at the expense of my prosperity and the opportunities of my children, which is what this is.

The garbage at the Gap has long been made by sweatshops that use to make cheap bootleg knockoffs, and their quality has gotten worse than that of the original cheap imitations. You can find the front line of the invasion at the colleges you pay for. Look in the English as a Second Language program. Interview the admissions counsellors. Talk to any corporate HR minion about the top down, central banker imposed federal compliance initiated by Hitlery in 1996. Audit the IRS redistribution dispensation.

Spend this commercial season considering your shrinking options. Its not the money, but its your patriotic duty to stop engaging in taxable activities anyway. 

Wed, 12/04/2013 - 11:23 | Link to Comment Pee Wee
Pee Wee's picture

Clearly this is a problem for government to solve.   The Affordable Apparel Act of 2014.

"If you like the shirt on your back you can keep the shirt on your back."

Does anyone know if the Fed is buying old shoes yet?

Wed, 12/04/2013 - 11:17 | Link to Comment eucalyptus
eucalyptus's picture

I wonder how brands like Alden shoe or Allen Edmonds or British shoemakers are doing. You know, making shoes that actually last 20 years. Not the crap you find at the mall. 

 

Wed, 12/04/2013 - 11:20 | Link to Comment JMT
JMT's picture

The clothes (or apparel) being sold are overpriced crap. same with customer service..  and when you pay always asked if you are 'using xx retailer card'.   prices have gotten pretty high so they can mark it down and scream 40% off everything, so that flannel shirt that is regularly priced at $59.50 costs only $35.70 and you are made to feel like you are getting a great deal

Wed, 12/04/2013 - 11:18 | Link to Comment JMT
JMT's picture

The clothes (or apparel) being sold are overpriced crap. same with customer service..  and when you pay always asked if you are 'using xx retailer card'.   prices have gotten pretty high so they can mark it down and scream 40% off everything, so that flannel shirt that is regularly priced at $59.50 costs only $35.70 and you are made to feel like you are getting a great deal

Wed, 12/04/2013 - 11:20 | Link to Comment JMT
JMT's picture

The clothes (or apparel) being sold are overpriced crap. same with customer service..  and when you pay always asked if you are 'using xx retailer card'.   prices have gotten pretty high so they can mark it down and scream 40% off everything, so that flannel shirt that is regularly priced at $59.50 costs only $35.70 and you are made to feel like you are getting a great deal

Wed, 12/04/2013 - 11:43 | Link to Comment Mi Naem
Mi Naem's picture

Whoa, man, we heard ya! 

;)

Wed, 12/04/2013 - 18:50 | Link to Comment W74
W74's picture

Shhhh, don't give away Kohl's business model...

Wed, 12/04/2013 - 11:25 | Link to Comment yogibear
yogibear's picture

LOL, as the Chinese produced junk (Inventory) piles up people are having a hard time funding the much higher healthcare cost with Obamacare. Consumers are spent out. Living on the next credit expansion fix until bankruptcy.

Wed, 12/04/2013 - 11:26 | Link to Comment Orwell was right
Orwell was right's picture

Unless my eyes deceive me....the chart applies to "specialty clothing" retailers.    The tone of the article makes it sound like EVERY retial outlet is in trouble.     While it may turn out that all retailers are hurting....(yes, the economy still sucks)....the chart provided doesn't support that

Wed, 12/04/2013 - 11:32 | Link to Comment JMT
JMT's picture

and most shopping centers / outlets malls are jammed on weekends from Labor day - after New Years.. have to wait until someone leaves to find a parking space.. the apple store is jam packed as well.  I saw many people at the Stamford Town Center carrying bags from apple or new Mac books or Imacs so people are spending money

Wed, 12/04/2013 - 11:25 | Link to Comment creeko
creeko's picture

I like to read the MSN Money website while reading ZH so that I can get the feeling of matter/antimatter collisions. 

Wed, 12/04/2013 - 11:31 | Link to Comment JMT
JMT's picture

I have to ask this... sometimes medications for depression can precipitate manic behavior the opposite side of depression -- one sign is out of control credit card spending.. doctor prescribes prozac then raises the dose to four capsules a day like its nothing for slight depression and fell off  wagon credit card balances went parabolic.. 

Wed, 12/04/2013 - 11:40 | Link to Comment Mi Naem
Mi Naem's picture

I do wish Ubercrummy & Filth would hurry up and die. 

Wed, 12/04/2013 - 17:57 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Isn't Sears,  JCP, and Japan ahead of them in line?

Wed, 12/04/2013 - 18:48 | Link to Comment W74
W74's picture

Laughter Tears!

Wed, 12/04/2013 - 11:42 | Link to Comment markar
markar's picture

JCP will never come out of this alive... RIP

Wed, 12/04/2013 - 12:21 | Link to Comment NotApplicable
NotApplicable's picture

Thing is, will they be zombified in an effort to continue some charade of a consumer economy?

Next up, Inventory Backed Securities!

with Mr. Yellen orchestrating the mighty K-Hen

Wed, 12/04/2013 - 17:57 | Link to Comment lakecity55
lakecity55's picture

Neither will any other business. Soon the Regime will own all business. You will get paid with an EBT card.

Dictatorship, Martial Law and Murder, that's what's for dinner.

Wed, 12/04/2013 - 11:51 | Link to Comment deerhunter
deerhunter's picture

I haven't bought new clothes in four years except underwear and socks.  Essentials.  All clothes bought at thrift stores.  Was making well over 100K when company BKed.  Two car wrecks blown shoulder, law suits,  everthing coming up roses.  Two surgeries without insurance in family.  No debt except mortgage.  Downsizing out of question until I can sell house.  It is amazing what you can do without.  I hunt deer for meat now.  One in freezer and can take as many does as I buy tags for.  Lack of lifting ability due to car wreck severly limits job options. The world does not owe me a living.  I will keep swinging.  

Wed, 12/04/2013 - 12:19 | Link to Comment NotApplicable
NotApplicable's picture

Kudos for being a survivor rather than a victim.

Wed, 12/04/2013 - 18:48 | Link to Comment W74
W74's picture

Dude, tell me about those car wreck lawsuits!!!  I got destroyed by a 22 year old chick talking on her cell phone and then SHE filed a 50k lawsuit for a broken thumb.

Nevermind my torn ACL + MCL, and fractured forearm, plus not working for a month (had to take a different position and they didn't give me back my old one, had to train my replacement so I left that job), bought a new car and basically just got fucked.  No worries, I'm recovered.  Fuck chicks on their cell phones though.  They can burn.  Saw one coming back from Ohio texting in her right hand, cigarette in her left.  Fuck them.

I need to come out your way.  I can lift anything.  Polish retard strength goes a long way.  I love your attitude sir.  That's what built old America. (Can we start calling it Old America now?  How about Ancient America?)

Wed, 12/04/2013 - 12:45 | Link to Comment Agent P
Agent P's picture

L Brands up y/y....titties and thongs never go out of style! 

Wed, 12/04/2013 - 13:32 | Link to Comment Make_Mine_A_Double
Make_Mine_A_Double's picture

A few years ago my teenaged step daughter was complaining that all her friends wore the same thing from Abercrombie.

She made this profound observation on teenage girl herd mentality while sporting a tee shirt with ABERCROMBE stenciled across her chest and a pair of sweats with ABERCROMBE stamped on her behind.  

Point being if you are marketing to teenagers your branded store seems to have a limited shelf life - maybe 10 years tops.

Wed, 12/04/2013 - 13:51 | Link to Comment KnightTakesKing
KnightTakesKing's picture

Maybe the Fed should stop buying MBS and start purchasing excess inventory from A&F?

Wed, 12/04/2013 - 18:39 | Link to Comment W74
W74's picture

Or we could send the surplus to Africa and in the process destabilize local textile industries: everything from suppliers to sowers to distributors to machine repairmen to merchants, to those who make the string and fabric.  We should send them cheaper-than-fuck rice and corn too and then wonder why their farmers are poor if they grow anything at all.

Wed, 12/04/2013 - 15:20 | Link to Comment Red Raspberry
Red Raspberry's picture

I was just at walmart looking for size 14 slip ons.  Not a one in sight.

Wed, 12/04/2013 - 18:35 | Link to Comment stocktivity
stocktivity's picture

sorry Shaq

Wed, 12/04/2013 - 17:51 | Link to Comment lakecity55
lakecity55's picture

Nobody has any discretionary income: it all has to go to CommieCare to pay for the 'healthcare' you will absolutely never receive.

The teleprompter-reading maggot should be run out of town on a rail with hot tar and feathers.

All the money to build the website went to the Wookie's buddy who then kicked it back to the Wookie.

Wed, 12/04/2013 - 18:34 | Link to Comment W74
W74's picture

Shit, even under the old system the last few times I sought healthcare I left feeling like I didn't actually receive anything for what I paid...or much of anything at all other than a "you're fine; nothing to worry about".

No wonder I take care of myself.  I have to.  No one else will, not even the doctors, and while I have some faith in nurses, most of them are just in it because it beats being a single mom, I guess.  (sorry to dig on nurses; just observation).

Wed, 12/04/2013 - 17:55 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Individual stores don't matter.   All that matters is the total at the end of the Xmas buying frenzy.    There's probably some new store the young hipster people go to now.

Wed, 12/04/2013 - 18:30 | Link to Comment W74
W74's picture

Ooo Ooo.  Is it Hot Topic?  No...that was 15 years ago.  Not really seeing too many "goth" kids at the mall these days.  Shit, not really seeing anyone at the mall except for at the three cash for gold shops.

Wed, 12/04/2013 - 18:02 | Link to Comment Peter Pan
Peter Pan's picture

Buy a raincoat because when the shit hits the fan you need to be dressed accordingly.

Wed, 12/04/2013 - 18:29 | Link to Comment W74
W74's picture

One of these days I'm going to have to throw globs of poo into a jet turbine.  My hypothesis is that the resulting scat scatter will look something like the Lincoln bedroom after O'bowel Movement and the Wookie go at it.

Wed, 12/04/2013 - 18:04 | Link to Comment Never One Roach
Never One Roach's picture

Increased sales does not mean increased profits... profit margins are paper thin if existing at all.

Wed, 12/04/2013 - 18:26 | Link to Comment W74
W74's picture

Have not bought clothes in 5 years (because admittedly my ex-wife/in-laws bought what they thought I would look good in; I have zero fashion sense anyway)  other than running shoes and moisture wicking socks.  Do not need more clothes!  Do not need more clothes!  If I do I'll hit the Goodwill store and buy something for between $2-$5.  Do not need more clothes, no I do not!

Do NOT follow this link or you will be banned from the site!