Retailing seems weak....and it likely will get weaker as the year goes on.
One of the factors that is seldom discussed in the media is the ECONOMIC CONSEQUENCES OF THE CHINA GOODS GLUT.....
Americans are AWASH in goods, products and services of every kind....some of these things are merely consumed and bought again....
BUT SOME GOES INTO THE "AFTER MARKET" AND IS RE-SOLD AGAIN AND AGAIN.....Consider:
The number of good used cars is huge....and most of these cars are reliable and CHEAP! So, why do people continue buying new....when used cars at 1/3 to 1/4 the new price are just as good?
THRIFT SHOPS AND YARD SALES ABOUND....WHERE NEARLY NEW ITEMS ARE SIMPLY GIVEN AWAY..... Many Boomers have declared War on Clutter!
USED AND REMAINDER BOOKSTORES ARE AVAILABLE WHERE NEW OR NEARLY NEW BOOKS ARE SOLD AT A FRACTION OF THE PRICE OF B&N OR BORDERS.....so why do people continue to pay full price at the Big Box Stores when the same thing can be had much cheaper?
THE POINT?
AS THE BOATS FROM CHINA OFF-LOAD THEIR MASSES OF MERCHANDISE FOR THE AMERICAN MARKET......THE FIRST SALE OF THOSE ITEMS IS OFTEN NOT THE LAST.....
A HUGE "AFTER MARKET" FOR GOODS EXISTS...
AND AS THE AMERICAN CONSUMER BECOMES MORE PRESSED FOR CASH BECAUSE OF HIGH OIL AND INSURANCE COSTS AND LOW WAGES.....THEY MAY ABANDON THE TRADITIONAL RETAIL OUTLETS FOR CHEAPER AFTER MARKET PRODUCTS.....
IN SHORT.....IF "VIN IS IN" ....
....WHY ALWAYS PAY MORE AT WALMART.....ALWAYS?
I AM EXPECTING A CONSIDERABLE AMOUNT OF GLOOM AND DOOM IN THE RETAIL SECTOR LATER THIS SUMMER....AS THE ECONOMIC CONSEQUENCES OF HIGHER GAS COSTS AND HIGHER INTEREST RATES WASH BACK ONTO THE RETAILING STOCKS......
