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Retailers: Consumer spending's in trouble
http://money.cnn.com/2007/11/15/news/companies/jcpenney/index.htm?postversion=2007111513 ^ | 11-15-07 | Parija B. Kavilanz

Posted on 11/15/2007 10:44:46 AM PST by Hydroshock

NEW YORK (CNNMoney.com) -- The guessing game ended this week - consumer spending is slowing down as J.C. Penney became the latest retailer to confirm the trend.

"We're in a very difficult selling environment," J.C. Penney CEO Myron Ullman told analysts Thursday in a conference call to discuss the company's third-quarter results.

The call was monitored via Webcast in New York.

"We came out of September expecting a strong start for early fall. That didn't happen. This is the first time that we're seeing a real change in consumer sentiment," Ullman said.

Penney isn't the only one to be disappointed. Earlier this week, Home Depot (Charts, Fortune 500) and Wal-Mart (Charts, Fortune 500) both signaled their concern about a spending slowdown in the months ahead and into 2008. Penney's rival Macy's (Charts, Fortune 500) cut its fourth-quarter same-store sales estimate Wednesday.

Ullman blamed a combination of weak housing conditions, mortgage and credit market concerns, and what he called the "psychological effect of fuel prices" for eroding Penney's profit and sales last quarter.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Miscellaneous; News/Current Events
KEYWORDS: demographics; economics; holidayshopping; retail; vulturegram; weredoomed
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To: RobRoy

Penny’s said “we’ll make a 100 billion this year.” The figure was actually 75 billion. Ergo, The public is having BIIIIG problems.


21 posted on 11/15/2007 11:10:53 AM PST by Safetgiver (So simple, even a Muslim can do it.)
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To: ThE_RiPpEr.

My family is cutting back on shopping this year. Not so much because of money. We seem to have everything we need and most everything we want. We have decided to only get gifts if we see something special for someone. No sweaters or Hickory farms because we feel obligated. A card or a nice letter is better than a fancy soap, and it lasts longer. We’ll see how it goes.


22 posted on 11/15/2007 11:10:56 AM PST by Betty Jane
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To: RobRoy
They were, but this is CNN and they have an interest in tanking the economy. Isn’t it amazing how the quarterly report from 1 retailer signals the trend that halts the economy in it’s tracks?
23 posted on 11/15/2007 11:13:44 AM PST by aroundabout
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To: caisson71
why shouldn’t we expect a bit of economic cooling

Exactly

With the market well over 14 thousand, the only place it could go was down. Unemployment is still low, GDP plugging along.

The sky is not falling.

24 posted on 11/15/2007 11:18:44 AM PST by Puppage (You may disagree with what I have to say, but I shall defend to your death my right to say it)
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To: Hydroshock
I thought WALMART beat projections by $300 million? That’s not chickenfeed and i don’t think they doubled their sales vs last year by smoke and mirrors.

Why does everyone cry the sky is falling re consumer spending? Employment is solid, wages are up, and interest rates are very low. I’m looking for a seasonal gain of between 4-6% this season with the largest increase being in the gift card area.

BEWARE the lamestream medias screeches this season about mall sales being down. Many, many people will be shopping on line, which does not get reported immediately gift cards purchased are not counted until redeemed and that’s after Christmas.

25 posted on 11/15/2007 11:19:07 AM PST by aroundabout
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To: Para-Ord.45

But that’s all GOOD news. Surely you can’t expect CNN to report THAT?


26 posted on 11/15/2007 11:20:32 AM PST by aroundabout
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To: Hydroshock

I spend my retail dollars on imported oil products.


27 posted on 11/15/2007 11:21:37 AM PST by gathersnomoss (General George Patton had it right.)
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To: HereInTheHeartland
Where did this come from? Here is central New Jersey, from Friday night thru Sunday night the stores and malls have been over flowing the last few weeks.
28 posted on 11/15/2007 11:23:30 AM PST by fedupjohn (If we try to fight the war on terror with eyes shut + ears packed with wax, innocent people will die)
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To: Hydroshock

This is a good time for the blessed to stock up on children’s coats and clothes to donate in the coming season.


29 posted on 11/15/2007 11:24:09 AM PST by G Larry (HILLARY CARE = DYING IN LINE!)
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To: 1Old Pro
I have seen Jacques Penne' go through these trends before, building stores and then boarding them up. Guys, please do me a favor and stop before you build one in south Richmond.

Thanks.

30 posted on 11/15/2007 11:24:50 AM PST by gathersnomoss (General George Patton had it right.)
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To: fedupjohn

“Where did this come from? Here is central New Jersey, from Friday night thru Sunday night the stores and malls have been over flowing the last few weeks.”

The people there are doing what Rush used to say in the 90’s.
They are refusing to participate in bad economic times.


31 posted on 11/15/2007 11:38:07 AM PST by HereInTheHeartland ("We have to drain the swamp" George Bush, September 2001)
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To: Hydroshock

“They were talking about the high cost of living, and one had a solution of applying for more credit.”

Sounds like my crazy neighbors: their house and property are mortgaged so heavily they couldn’t pay it off if they live to be 150 years old.

They think as long as they can make the minimum monthly payments they’re OK.


32 posted on 11/15/2007 11:38:29 AM PST by EEDUDE
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To: EEDUDE
Photo Sharing and Video Hosting at Photobucket
33 posted on 11/15/2007 11:40:13 AM PST by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock

I ahve come to the conclusion tha tthe inflation numbers are a work of fiction worthy of Stephen King.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

I started saying that years ago and have been called every kind of fool known to man for my trouble. But I take consolation in knowing that I am right!


34 posted on 11/15/2007 11:42:44 AM PST by RipSawyer
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To: Hydroshock

You ain’t seen nothing yet, if Hillary wins!


35 posted on 11/15/2007 11:45:55 AM PST by JZelle
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To: RipSawyer

Food & Energy have gone up a lot in the last 5 years but energy plummetted for like 10 years straight. Food didn’t do much of anything either. Home prices have been dropping for a couple of years now and most everything else is dropping (clothes, electronics, etc) besides health insurance—and even that is a lot cheaper now if you are willing to get generics at Walmart or Target ($4 a bottle now—I used to pay $20). Since food & gas are only a relatively small % of my budget even with the recent run up, I’d agree with the 3% annual inflation #s.


36 posted on 11/15/2007 11:54:38 AM PST by rb22982
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To: RobRoy

The TREND the media wants is DOWN...so JC Penney confirms that trend.

Bad Economy=Vote Democrat.


37 posted on 11/15/2007 11:58:58 AM PST by rightinthemiddle (Without the Media, the Left and Islamofacists are Nothing.)
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To: Hydroshock

If Penney’s and other retailers are concerned about declining sales, they should lower prices.


38 posted on 11/15/2007 12:03:22 PM PST by steadfastconservative
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To: RobRoy
What gives?

CNN headline? Trying to turn this into another "worst economy since Hoover" so the Dems can consolidate power and take the WH next year?

Nah, couldn't be that. The MSM isn't THAT biased, are they?

(Do I really need a /sarc tag?)
39 posted on 11/15/2007 12:05:28 PM PST by OCCASparky (Steely-Eyed Killer of the Deep)
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To: RobRoy
I thought Wall Marts numbers were behind the huge stock market surge two days ago. What gives?

Perhaps Penny's which had a very good year last year, can't deliver again. Maybe people are preferring Wal-Mart, Kohls, Target, and Macy's.

Just speculating.

40 posted on 11/15/2007 12:07:17 PM PST by NeoCaveman ("Don't doubt me" - The Great El Rushbo)
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