Posted on 07/13/2011 7:16:10 PM PDT by BenLurkin
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.
While the demand at stores like the 99-Cent Store or Dollar Tree is still relatively high, the biggest chains in the nation have fallen short of Wall Street’s expectations for several months, a trend that may prove even more ominous for the economy at large.
“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 Obama depression continues to explode,” he added.
Got Galt?
I knew it was bad when I saw one of those “everything’s a dollar” stores in town had a sign that said: Ask us about layaway! My wife and I laughed about it. Financial planning fail.
If you can’t watch a video of Howard Davidowitz, it’s just not the same. He is the BEST!
What used to be called “dime stores” are now “dollar stores”. After QE3 and QE4, what used to be called “dollar stores” will be called “ten-dollar stores”. If we’re lucky.
Gee, hope Barry O doesn’t read this post. He might get all huffy and stomp out of the room, arms folded and pouting.
My favorite stores: 1) Goodwill (I bought a beautiful Columbia Sportswear rain jacket for $8.99, like brand-new. At their outlet store the same jacket was $79.99.) 2) Dollar Tree; 3) Grocery Outlet. Yard and garage sales are good too.
Try putting quality products on your shelves, not the cheap chinnese crap that won’t make 3 washings, and make clothes for us older ladies. We are not 20 any more. Nor do we want to dress as sluts, or wear maternity tops, or low rise pants.
The business I work for fronts on a major, fourlane highway. In a shopping plaza (approximately 1/2 miles away) there is a Dollar General. They have very distinctive yellow plastic bags. I now routinely see pedestrians walking along the berm, or thru parking lots, coming from the Dollar General...they are the closest store (to several older housing plans) that sells milk (closest gas station is further away). Sometime I see kids, walking with their parent, and carrying (all together) what looks like several days worth of food (all milk, cereals, crackers, soup cans). It is heartbreaking (and scary—the road is busy)...but I see more and more.
Hoover had soup lines...Obama has lines of walkers on highways who counted change to buy ‘something’ to keep themselves and kids going.
A CBS MSM affiliate actually used the term “Obama Depression?!”
That won’t be up long and the headline writer will be unemployed shortly.
Quality stuff lasts too long.
Walmart has school supplies cheaper than what the dollar stores sell it for. Twenty cent lined notebooks, forty cent composition books in the back to school sales.
We are e not 20 any more nor do we want to dress as sluts...
Pretty good description of why I do not buy clothes. An even better combination for the gal that is 20 is maternity clothes. I had occasion to try to find something decent for a young mom for church wear- after she complained there was nothing out there. I am not sure if slutty or just butt ugly would be the best description.
Up to a couple years ago the local Pamida store (which I seldom shop in) always sold 70 page spiral notebooks by the case for 10 cents a notebook.
Last year they were 20 cents each, still for a case. This year they are advertising them limit of 6 for 20 cents each.
“Try putting quality products on your shelves, not the cheap chinnese crap that won’t make 3 washings, and make clothes for us older ladies. We are not 20 any more. Nor do we want to dress as sluts, or wear maternity tops, or low rise pants.”
You want that for a dollar?
I think I’m going to launch a quarter store. How small can you mass produce tubes of toothpaste?
No I want stores like Penny’s and Sears to carry clothing the average 50-60 year old can wear. That are not made of cheap Chinese material that won’t withstand 3 washings, nor is gaudy, slutty, low rise, maternity style or low cut. And shoes in size 5.5, 6 if they are pumps. And not tell me lies that they don’t make them, they are all shipped to border states, etc. My response is we have an invasion, what is their excuse for not providing products suitable to my age range?
So their crap sits on the shelf/racks, and I shop the Salvation Army on Wed when they do half price day and find clothes fit for my age range.
If all they want to sell to is the 20ish then it can rot on their racks.
I know when I go into the $1 store I’m getting cheap Chinese crap. Only thing they are good for are greeting cards, wrapping paper or gift bags. I might find some cleaning products once in awhile.
At 63 I sure don’t. Nor after wearing maternity tops for 4 kids would I every put one on again. As for the butt ugly, there is no cure, as 20 somethings buy the crap for the stores.
Yes I have seen the exact same scenario that you describe.
The Baraqqi Depression grinds on.
Many on FR seem to confuse Dollar General with the so-called “dollar stores” where everything is a buck.
DG is more like a mini-WalMart. They have a wide variety of things for sale, including food, at a wide variety of prices. They don’t have much inventory of any one item on the shelf, they must have fantastic inventory turnover. They are competing aggressively with WM and in many cases taking business away.
Oh, I’m sorry I misunderstood. That is one area that I cannot understand, woman’s clothing. I can relate though, but from a different perspective.... my daughters.
I took them to Burlington Coat Factory last year, to pick up stuff for school and undergarments for them. The children’s section was filled with nothing but smut. There were no white bra’s for young girls (I’m talking about 10 & 12 year old girls), they were all push up, padded bras (I forgot what they are called... cleavage bras?). The clothing was designed to make my girls look like street whores. Needless to say, we left. We then tried Sears, The Gap, Pennies and somewhere else in the mall, with similar results.
I called my wife and she suggested Kohls, which is where we found what we were looking for. So, yes I can sort of understand. I guess it is easy for men, well for me, I just get jeans, t-shirts, and flannels for the most part, and have a few nice shirts and pants for going out to supper club or whatever.
I will tell you, with some trepidation, because my wife would bean me if folks found out... she will drive 20 miles to the Goodwill store a few towns over and buy dress clothing there. Almost always new, where they get it from, I don’t know. Designer stuff that fits her, at a few bucks a garment.
I say she would bean me, because that is her secret shopping place, and she would be embarrassed if folks found her there. I’m not sure why she would be, it is a sign of our times, and common sense frugality, which I love her for. Even though we may be fortunate enough to afford a $300 sport coat, she has the common sense to understand how wasteful that is. To her, that money would be better served elsewhere, and I am grateful that she can prioritize in that way. Many folks cannot. But again, she is still not so proud of being frugal, and I think she should be, as should you for having the smartness to find deals where you can.
Most of the clothing from Salvation Army comes out of closets of relatives who have departed this live for a hopefully better on. And no one in the family wants to take them or they don’t fit, or they are the wrong age range.
It’s easier to dress boys, having had 3, most of their clothes came out of yard sales as I was a single mom for 10 yrs.
Tell her she should be proud of herself. I get told the opposite that I don’t need to do this. But you know because I do do it, we have enough money for an few dinners a year out, and can replace a 30 year old ridding law mower on it’s last legs, for cash not payments.
My mom told me one to many Great Depression stories growing up and I have always been fugal.
And unless the GOP grows some brass we will be facing an even greater depression than our grands faced. If it had not been for the garden, and chickens they would have starved with 7 kids, grand dad with black lung, and granny working in a shirt factory.
This pig in a poke they are trying to peddle is a JOKE. Just as big a joke as 0’s budget ‘fake cuts’
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