Frugal shoppers overshadow retailers' holiday: 'Can clothes be washed?' - new consumer catchphrase

[marmar]

from MarketWatch:



WEEKEND EDITION
Frugal shoppers overshadow retailers' holiday
'Can the clothes be washed?' becomes new consumer catchphrase

By Andria Cheng, MarketWatch


NEW YORK (MarketWatch) -- For his birthday this year, Ahmed Dilloo got a $105 Guess watch from his wife. Last year, the couple, whose birthdays both fall in October, celebrated the occasion by throwing a party for about 15 friends and buying new jeans and clothes for each other and their 21-month-old son.

"This year I'm only buying small gifts for her," said the 45-year-old office building superintendent in Queens and a native of Mauritius, adding their spending has tumbled by more than 50%. "We don't want to spend money. Before, we buy what we see is beautiful. Now, we just buy what's necessary."

With the downturn in the economy exacerbated by rising unemployment, the financial sector meltdown and stock market volatility, consumers' confidence has hit rock bottom and their desire to spend is in a freeze mode. And with this happening just on the verge of retailers' critical holiday shopping season, some industry analysts predict this will be the worst season in at least 17 years.

The consumer "has changed," said Bob Shearer, chief financial officer of the top U.S. apparel company VF Corp., in an interview. "It really didn't matter what income level you were. Consumers just become much more cautious. We are seeing that softening across the board." ......(more)

The complete piece is at: http://www.marketwatch.com/news/story/Frugality-becomes-latest-holiday-shopping/story.aspx?guid=%7B2655E007%2D9CFF%2D4ADA%2D89C3%2D90A4E5E9C5D7%7D

[TomInTib]

1. A friend of mine is part of one of the largest retail liquidators in the country.

They are sitting on $2.5 billion of retail goods.

They estimate that there will be 20,000 retail doors closing in '09.

I hope our stores are not in that number