November 27, 2006

If holiday shopping got off to a "big bang" as some lazy MSM reported, why are retailers getting killed today?


Every year, the lazy MSM writes reports the day after Thanksgiving weekend about how great things are, how there were big long lines at the malls, and how retail sales were "above expectations"

Then the true numbers come in.

Well, same arc today, with lazy reports like this one in the Tribune.

Retailers got what they wanted over the Thanksgiving weekend -- a strong start to the 2006 holiday shopping season as consumers crowded stores in search of huge discounts on flat-screen TVs and other hot items.

But then the real numbers come in

Stocks Fall on Wal-Mart Sales Report
Wall Street suffered a sharp pullback Monday as investors returned from the Thanksgiving weekend with questions about the strength of the retail sector following a rare sales decline at Wal-Mart Stores Inc. The Dow Jones industrials fell 150 points.


"There is now significant concern that the holiday retail season is going to underperform," said Gregory Miller, chief economist at SunTrust Banks. "Traffic doesn't necessarily translate into profits," he said, referring to reports of crowded stores over the weekend.

Almost like the housing bubble and Iraq - cheerleading followed by reality

Why does the MSM do it? One, they're lazy. Two, who are the MSM's big advertisers? You got it - the retailers. Just kissing the feet, doing their job.

20 comments:

borkafatty said...

I think that big bang theory, was more physiological than actual...more of a firecracker IE: Ladyfinger...No one in my family even stepped out the door, and we are a family of 12, no shopping here. And I suspect the retards standing in line at 4 am are just that retards, and the MSM is their cheerleader.

Richard said...

The coming housing collapse:

http://tinyurl.com/y5gh8p


"I am convinced that the housing bubble is gigantic and will burst before long with massive implications here and abroad. In fact, it's the key to the global economic outlook."

Anonymous said...

predicted last week to see a 2% sell off or better in US markets today...as the retail sales figures were all bogus to begin with as they have been for years.

Joey said...

Maybe sales have gone up, but I'm sure Black Friday PROFITS have gone down. Many retailers were selling the more popular items at a loss just to get feet in the door.

And for the record, I stayed home and watched Maury Povitch's paternity test show (You are not the father!), and some Jerry Springer. It's how I like to celebrate my mornings off from work.

Then my wife and I went out for some Dim Sum, went to an open house for half an hour (don't worry... I wasn't going to buy! She likes to see how other people decorate, I like to see the desperation on the broker's faces) , and then went to the movies.

A nice relaxing non-shopping day.

Anonymous said...

Joey,

I like your style!

DimSum with a side of schadenfreude.

Anonymous said...

the MSM doesn't know the difference between sales and profits

hilarious

Bake McBride said...

May I caution that it's still very early in the game....and from the calls I've made, online sales are up big at 2 retailers...

It will be an interesting Holiday season....Have no idea how it will shake out.

I know for a fact that I will spend more this year...but then again, I'm not leveraged out my ass (LOL)

AM Fence Sitter said...

I saw the CEO of what used to be yellow Trucking (now a conglomerate) on CNBC last week. He noted a slowdown in shipping as a leading indicator. There was some pinhead portfolio manager that argued the size of items shipped was much smaller i.e., a truck full of I Pods. I was just amazed at the level of BS coming out of this pumped up fool, the I Pod comment was right out of the NAR playbook.

It's pretty much game over for wealth building, it's now wealth preservation time

Anonymous said...

SALES DO NOT EQUAL PROFITS

tabasco jenkins said...

Nasdaq down 2% the first trading day after Black Friday. That is not a good sign for all those thousands of oxymoron stock analysts who've been touting tech the last couple months.

Anonymous said...

I eat things.

Anonymous said...

What do you think is the best investment now ? Gold Stocks ? or physical gold bars :)? Just plain ol' CD's ?

hemorrhoidforhousing said...

Does slipping dollar bills into G-strings count as holiday spending?

Anonymous said...

Foreign currencies. Any from a country that exports.

Patch Tuesday said...

I saw a lot of big dollar TV's being bought, but they were all at the 30-40% off sales price...

Mammoth said...

O.k., I confess. I did go shopping on Black Friday.

Drove to Home Depot and bought 8 bags of steer manure. Gave them $7.92 + tax, to count towards their holiday season sales.

It's an annual ritual - spread it on the ornamental garden beds in front of the house every fall, on the Friday after Thanksgiving.

Black Friday indeed!
-Mammoth

Anonymous said...

Mammoth, do you really expect us to believe that bullsh_t story?

Anonymous said...

The malls where I live (South Hills of Pittsburgh) are like they are any other time during the year. Looks like business as usual. I don't see the crowds.

Dave said...

I must say I saw some signs that all is not well in retail LA-LA land.

I ducked early doorbusters at Wally-World this year and found most of what I wanted anyway later in the morning with (shudder) NO LINES! A couple of years ago the checkout lines would have lasted for hours!

I works at another leading retailer and found their stocking is about 20% or more below last year, despite all their rosy statements. I put the friggin' boxes up and their sales suck, despite the news. I'm slamming product up like it's late January!

Then I went to the local computer show. It's really really funny because they just cut the cost of admission 20%.

They cut it because computing is a mature industry now. Few sell new systems. Most sellers are recycling old junk.

Doesn't bode well for the U.S. gov't which has considered the 4% computer economy which has doubled speeds to be 50% of America's "increased productivity".

(tongue in cheek) Thankfully, that's why we have had growth instead of a depression for the last several years!

Science fiction is really funny sometimes. JOEL (of MST3K), HELP!, PLEEEEAAASSSEEEW HELP!

Patch Tuesday said...

This is outrageous, I bought a big screen TV at Circuit City on Saturday for $2,399, which was on sale from $3,299. Today, I stopped in there and Best Buy had cut the price on the exact TV down $200. Circuit City turned around and cut the price $200 below Best Buy. Bottom line, I got a refund of $462 today. They can't be making money like this...