MasterCard Spending Plus, which tracks retail sales, says that consumer electronics products are moving off the shelves of stores but women’s apparel is not. A Wall Street Journal analysis of the data for the first two weeks of November shows that purchases of electronics rose 8.1%. Purchase or women’s apparel was down 3.3% and purchase of luxury goods was off 9.2%.
Retail sales were so weak last year that a number of stores were forced to close in early in 2009 and the industry made tens of thousands of layoffs. It appears that another downsizing is likely.
The trend in the MasterCard survey my favor Best Buy (NASDAQ:BBY) and Amazon (NASDAQ:AMZN), but it will hurt a number of large stores which sell more general merchandise and do not cater to the consumer electronics trade. Macy’s (NYSE:M) is probably near the top of this list along with Nordstrom (NYSE:JWN).
The difference between the shopping patterns of late 2008 and late 2009 is that retailers may end up being divided into “haves” and “have nots.” Last year’s results bloodied most firms in the business. This year, the consumer may be willing to spend a few hundred dollars on the hottest video game. But, his purchases may end there. He will buy himself a Microsoft (NASDAQ:MSFT) Xbox and get his wife a bunch of flowers. That dress will have to wait until 2010.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
