This article talks about how bad retail sales were over the last week. Typically, the Friday after Thanksgiving (Black Friday) is one of the largest shopping days of the entire year. However, this year, as the title of the article suggests, stores posted the worse revenues in four decades. Many stores posted huge losses. The Gap for example was down 10% from last year. Wal Mart however was one of the few stores that actually did increase revenues. They were up 3.4%
I'm really not surprised to hear this. Many of these stores' products are very elastic, meaning I think people can definitely go without them. Abercrombie and Fitch for example said they didn't want to offer sales because they didn't want to change their brand image. I think people turned to WalMart because it is a cheap alternative to all of these other companies.
1 comment:
I think sometimes it depends on how critics look at an issue too. For example, the author of this article remains a pessimistic view that sales are dropping. At the same, another person who has optimistic view will the look at the thanksgiving sales and said: "oh, we expected that the drop will be even more dramatic. So people are actually still spending more than we thought." Just a little remark..
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