As usual, the corporate MSM is attempting to spin a shitty retail sales report into a report showing consumers are back baby. They desperately want this storyline to convince the sheeple that all is well in our consumer spending dependent economy. The headline on the Rupert Murdoch owned Marketwatch was:



I guess their definition of brisk and my definition of brisk are slightly different. The storyline during the winter was the shitty retail sales were due to the cold weather. We were told retail sales would skyrocket come spring. Well let’s examine what has happened from March through May, which the last time I checked constituted Spring. Here is a link to the data I’ll be referencing:

  • Retail sales grew by a pitiful 0.3% over April.
  • Excluding the debt financed auto sales, retail sales grew by an infinitesimal .07%.
  • We know for a fact that auto loan length is at a record high of 66 months, auto leases are at an all-time high of 26%, and 34% of all loans are being made to people with bad credit. Does anyone really think these are sales? They constitute 20% of all retail sales in this country.
  • Retail sales are $18 billion higher this May versus last May. $8.4 billion, or 47% of that increase, is attributable to Government Motors through Ally Financial and the rest of the Wall Street bankers doling out easy money loans to deadbeats.
  • During this supposed retail recovery from the dreadful winter, total retail sales have grown by a total of $3.6 billion from March through May. That is a miniscule 0.8%. When you back out the auto sales, it is a microscopic 0.5%. On an annualized basis retail sales are growing at below 2%.
  • With inflation running at 5% or higher, REAL retail sales are declining. This is why retailers are reporting horrible profit results.
  • Over the last three months retail sales, excluding autos, has risen $1.7 billion. You’ll be thrilled to know that $0.6 billion of that increase is from you paying more at gasoline stations. That is 34% of the increase. Another $0.8 billion was spent at building and materials stores to make repairs on your houses damaged from the winter storms.
  • Over the last three months sales have declined at electronics & appliance stores, food stores, restaurants and for all the idiots thinking on-line is the reason bricks and mortar is dying – INTERNET SALES DECLINED. I guess sales tax does matter.

Again, the MSM and the Wall Street shyters are wrong. There is no retail recovery. It was not the weather. The only retail being done is through easy long-term auto and home furnishing debt. The loan losses will follow when the next financial crisis arrives. The retail death rattle grows ever louder as Radio Shack announced results that foretell a bankruptcy filing before year end. That will mean 5,000 more SPACE AVAILABLE signs in strip malls and regional malls across America.



  1. It’s been raining a lot here in NJ the past few weeks. That’s why we’re not shopping.

    When it doesn’t rain, it’s very very humid.

    Or, hot.

    The retail sluggishness is all weather related, trust me. Once the weather is perfect ….. I’m guessing between September 9th and September 11th …. you will see a burst of economic activity never before seen in the annals of Amurika.

  2. I use the Quinn indicator. As I drive in my area I keep track of empty retail space. Spaces that have been empty for a long time are NOT being sold or rented. More locations are turning up empty. Some of these locations are pretty big. The Quinn Anecdotal Retail Space Indicator is showing that someone is holding an empty bag of mortgages. The trend is down.

  3. Lululemon profit falls, lowers outlook

    By Anna Prior

    Lululemon Athletica Inc. on Thursday lowered its outlook for the year, as the maker of high-end yoga gear also reported a drop in profit for the fiscal first quarter amid a tax charge tied to a share-repurchase plan.

    The retailer also issued a second-quarter forecast that fell short of Wall Street’s expectations, helping to send shares 6.6% lower to $41.40 in recent premarket trading.

    Lululemon unveiled a share-repurchase program of up to $450 million, which it will fund through the repatriation of foreign earnings. The company recorded a $30.9 million tax charge in the first quarter for the planned repatriation.

    The company also said Chief Financial Officer John Currie, who has been with Lululemon since 2007, plans to retire by the end of the fiscal year. The company said it would engage an executive-search firm to seek Mr. Currie’s replacement.

    For the quarter ended May 4, the Vancouver-based company reported a profit of $19 million, or 13 cents a share, down from $47.3 million, or 32 cents a share, a year ago. Excluding the tax adjustment, per-share earnings for the latest period were 34 cents.

  4. Toys “R” Us loss widens on strategic investments

    By Maria Armental

    Toys “R” Us Inc. said its first-quarter loss widened as the company increased spending in strategic areas like global e-commerce and U.S. store maintenance.

    The Wayne, N.J., retailer–which operates stores under its namesake brand as well as Babies “R” Us and the FAO Schwarz brand–has struggled against a stiffer competition from online rivals, such as Inc., and other big-box retailers.

    Chief Executive Officer and Chairman Antonio Urcelay said the company has begun “an aggressive inventory clearance effort” in the U.S. to make way for new products for the holiday season and improve inventory turns.

    “While our consolidated inventory balance increased versus the prior year, we believe that our focus on improving the in-stock position has resulted in better shopping experiences for our customers, both in-store and online,” Mr. Urcelay said.

    Overall, the company reported a loss of $196 million for the period ending May 3, up from a loss of $111 million for the year-ago period.

    Still, sales rose nearly 3% to $2.48 billion.

    Same-store sales, a key retail metric, rose 1% internationally, mainly due to increases in seasonal and baby product sales. U.S. stores reported same-store sales growth of 4% with learning and entertainment products accounting for most of the growth.

    Gross margin narrowed to 37% from 37.4% mainly on discounts and promotions in its baby products and core toy categories.


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