In a stark demonstration that the economy is really starting to tank, retailers' March results are incredibly gloomy, with sharp declines that took many chains by surprise. Wal-Mart, which has been beefing up its "value" marketing message, was the only bright spot, primarily 'cos it's the cheapest place around. But sales at most other stores posted steep drops, with mid-priced stores hit hardest. This included Gap Inc., Kohl's, J.C. Penney, and Dillard's. And while declines were less pronounced at high-end retailers, they also felt the pinch, with sales at Nordstrom, Saks and Neiman Marcus being hit. "There has been a stark change in consumer sentiment," says Frank Badillo, senior economist at TNS Retail Forward, a Columbus, Ohio-based consulting firm. "And these numbers don't give us any reason to expect things will improve in the next few months." In fact, I am willing to bet they'll get a lot worse.
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The good times are over!
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