Pressure among Retailers Continues Following Drop in Sales in July

11 Months of Declines in Sales Give Massive Headache to Retailers

Summary: Shoppers remained wary of the economy. As evidence, sales for the month of July among US retailers continue to drop in its 11th month, the longest in decades.

But other retailers that adjusted their business model recorded an upbeat market amid recession.

A new data showed that the retail industry remains weak for the 11th straight months as July sales continues its downward plunge due to the current economic recession. This, as shoppers are still looking for cheaper alternatives making consumer spending in the US at a flat line for several months now.

However, retail stores such as Gap Inc. and Macy’s Inc. showed a relatively high revenue output, which they attributed to discounted prices of their merchandize and several cost cutting.

Meanwhile, economists said that the major forces behind the drop of sales are the cold weather, followed by high unemployment rate and lack of tax-free holiday sales for the school-opening season in July. They said that these forces kept majority of the buyers are bay.

Kurt Salmon Associates senior partner Michael Dart said that businesses still can’t picture the needs of the consumers, who remained under consistent pressure from the recession.

“If they want these consumers to spend their money, they have to implement drastic changes in their businesses to compete with those who can offer lower prices,” he said.

Records showed that sales for July fell as much as 5.1 percent compared to the same time last time.

Pressure among Retailers Continues Following Drop in Sales in July

11 Months of Declines in Sales Give Massive Headache to Retailers

Similar Articles

COMMENT

Recent Articles

Recent Business News

Popular News