Retail Sales Show Signs of Life

I don't think the examples below were the signs of life the author was referring to in the WSJ article about retail sales. It is possible that the inner cynic in me is being over critical, but the article doesn't really say much of anything about trends in sales as the numbers are not only representing a short period of time but are also fairly abstract.


"One month doesn't make a trend, and the economic news remains gloomy." A quote directly from the article suggests that maybe the media is trying a little too hard to sway public opinion of the state of the economy. I think this is true for both good and bad news. The disadvantage of the speed at which information travels in this day and age is that we have plenty of incomplete data to analyze and report on. Is it possible that we are simply seeing a shift from "higher lower end" retail to Wal-mart level simply because people are looking to scrimp and save wherever they can?

It would seem to me that there is a large range of consumer spending that can shift towards what I will call bottom of the barrel consumerism. There is a small segment of shoppers who will maintain beliefs about where their goods come from and will continue to pay higher prices, but there is a giant group who will buy as cheap as possible no matter what the overall cost is due to unintended consequences. Where do inexpensive goods come from and what does it really mean to get what you pay for/pay for what you get?*

It is Friday and I can do what I please given that this is my blog, so I will go on a tangent now. The major American home builders have long built as inexpensively as possible, creating vast stretches of suburban vomit which isn't conducive to development of neighborly relationships, eliminates any chance of planning meaningful transit service, and carries great susceptibility to devaluation.


They have often made the argument that "the American home buyer has spoken and this is what they want" but the fact of the matter is that as long as there is a buyer for something, somebody who stands to profit will provide it. Sizable suburban swaths on the verge of blight are the unintended consequence along with the one in nine mortgage holders likely to receive assistance for a home that is no longer worth anywhere near the loan they hold. The American home buyer has never been offered much of an alternative. I feel bad for the people who thought it was time to buy and own property in places like the wastelands around Phoenix, AZ. Look at what affordability got them . . . current values well below $100,000 for 3 bed, 2 bath single family houses, with such great supply that even at the price, it really isn't a good investment and likely never will be.

I recommend watching the above videos again. As retail growth occurs at Wal-mart, being able to hide might be a useful skill. Big box budget retail stores can be dangerous places. People get trampled, people get shot . . . this summer, I for one will be seeking relief from the heat in the cool of high end retail establishments. They should be as lonely as a suburban development in current economic times.

*The sub $1000 truck is a luxury purchase, not a necessity. When it ceases to operate, I won't be in dire straits.