Red alert: Consumer fears over inflation are mounting, potentially wiping out the momentum retailers have seen so far this year.JUST LIKE WE SAID A WEEK AGO.
The bad news for retailers came Wednesday, when Deloitte released its latest survey on consumer spending.
Seventy-four percent of Americans believe higher prices could curb their spending in the months ahead, and 53 percent see spring merchandise prices as inflated, according to a Deloitte survey released Wednesday. It’s currently up only a few percentage points, but inflation on most apparel is expected to be up 10 to 15 percent for fall due to higher raw material and labor costs. Higher energy costs, higher medical costs, unemployment levels and job concerns — and political unrest in Africa, the Middle East and Asia — are further driving down the will to spend.
While it will be mass and midtier retailers like Wal-Mart Stores Inc., Target Corp., Kohl’s Corp., J.C. Penney Co. Inc. and The TJX Cos. Inc. that will be hit the hardest, no company is expected to escape unscathed.
BETTER TIGHTEN YOUR SEAT-BELTS FOLKS; IT'S GONNA BE A BUMPY RIDE - AND ALL DOWNHILL.
THE ONLY THING THAT CAN STOP THIS AND SAVE US IS THE GOP FISCAL PLAN.
(REMEMBER: FOOD AND GASOLINE AND CLOTHING ARE STAPLES, NECESSITIES - THE BASICS. AND THEY ALL COST MORE NOW THAN WHEN OBAMA WAS INAUGURATED.
THE ONLY THINGS THAT'VE COME DOWN ARE HOUSE PRICES AND THE AMOUNT OF RESPECT THE USA HAS AROUND THE WORLD.)