Guys Buying Again: Good Economic Sign?

Guys are in the stores for a change.
Yeah, I know it's almost Christmas and they sorta have to be there.
But more guys are shopping and they're buying and they're spending more.
According to an October survey conducted by BIGresearch, men plan to spend about 3 percent more than they did in 2009; women planned to spend about 1 percent less.
That's the word from Bloomberg Businessweek which says that more man went out to stores and malls this year (post-Thanksgiving) than last. And yes, men are buying huge flat screen TVs and other electronics. Men are particularly fond of those items.
But guys are also buying clothing, shoes and accessories. And since men do not comparison shop as much as women, they tend to spend more. Retailers like that.
Does this mean that we've passed an important economic threshold? Are things finally beginning to turn around?
We're not sure. Not yet.
It could simply mean that guys feel a bit more secure about their finances and income than women do.
Stay tuned.

Economy Dips, Stocks Slide

From Bob Willis and Shobhana Chandra at Bloomberg:
Retail sales in the U.S. unexpectedly dropped in March for the first time in three months, raising concern the biggest part of the economy may falter once again heading into the second quarter.
Purchases fell 1.1 percent, with declines from car dealers to electronics stores and restaurants, the Commerce Department said in Washington. Only pharmacies and grocery stores saw a gain. The Labor Department said wholesale prices fell last month, indicating that deflation risks remain.
The figures served to temper optimism the U.S. recession has passed its worst, pushing down shares of retailers including Home Depot Inc. and Macy’s Inc. The reports came even as Federal Reserve Chairman Ben S. Bernanke said there were “tentative signs that the sharp decline” in the economy was easing, citing “progress” in stabilizing financial markets, which he said was critical to a sustainable recovery.
“The job losses are too great for the consumer to spring back strongly,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “Today’s data is a stark reminder that we haven’t yet seen the bottom in this recession.”
Stocks slid, with the Standard & Poor’s 500 Retailing Index losing 1.6 percent as of 11:40 a.m. in New York, and the broader S&P 500 index down 0.8 percent at 851.56. Benchmark 10-year Treasuries gained, sending their yields down to 2.79 percent from 2.86 percent late yesterday. . . .
The retail sales figures indicated incentives and promotions by car dealers and clothing stores such as Gap Inc. failed to draw customers hurt by a lack of credit and the highest unemployment rate in more than 25 years.
Excluding automobiles, sales decreased 0.9 percent after a 1 percent gain in February. They were forecast to show no change, according to the survey median.

Saks May Go Under

From Lauren Sherman at Forbes:
Saks, (Saks Fifth Avenue) the 110-year-old luxury department store, is in serious danger. The retailer has taken a beating over the last six months, starting with its 70%-off discounts before Thanksgiving, which were meant to stimulate sales but instead muffled them. Then in mid-January the company laid off 1,100 corporate workers. It's the consensus among analysts that Saks will see sales decrease by over 26% in the first quarter of 2009 to $636.57 million.
"I don't know if Saks will get through the year," says Howard Davidowitz, chairman of New York-headquartered Davidowitz & Associates, a national retail consultant and investment banking firm. "We know that the [overall] retail business is horrendous, but if you're in the discretionary or luxury space, you're dead in the water."