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Brace for More Retail Bankruptcies: June Sales Slump Across the Board

Posted Jul 09, 2009 01:09pm EDT by Aaron Task
Retailers across the board reported weak June same-store sales Thursday, providing yet another blow to the "we're in recovery, green shoots" set.

The good news is consumer spending has "stabilized" after collapsing in the second-half of 2008 and early 2009, says Sara Johnson, economist with IHS Global Insight. But the consumer is "mainly on the sidelines," as you'd expect with unemployment on the rise.

The June sales declines were particularly acute for teen retailers such as Abercrombie & Fitch (down 32%), luxury retailers like Neiman Marcus (20.8%) and department stores like Dillard's (14%).

With the rare exceptions of teen retailers Aeropostale (up 12%) and The Buckle (9.6%), the June sales slump suggests more weakness for mall operators and the likelihood of more bankruptcies in retail and retail-related commercial real estate in the months ahead, Johnson says.

211 Comments

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 01:53PM EDT

Didn't GW Bush start all the corporate handouts with the AIG bailout and the Big 3 auto bailouts????? Funny how Neoclowns can justify a war in Iraq which 99% of them were completely unwilling to serve in themselves and now they pretend that GW Bush handed off a "great" economy to Obama and GW had nothing to do with bailouts??? ROTFLMFAO, I guess when you have lived in fantasyland for decades pretending the GOP has been good for this nation you can imagine anything. Hahahahahaha :-)

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 01:55PM EDT

When is K-Mart,...Sears & Roebuck,...Home Depot,..Macy's,...Loew's,...And A FEW Others...Filing For "Bankruptcy"....Very Soon I Think.!!!!

Josie
Josie - Thursday July 09, 2009 01:55PM EDT

Johhny Ike are you drunk on Whisey all the time as you call it and that is why you are so ignorant and unable to speak english. Maybe it is time to sneak back across the border...

Phil S
Phil S - Thursday July 09, 2009 01:56PM EDT

Perhaps Commrade President for Life BO, will bring home some bread crusts and maybe a half bottle of Vodka from his lyttle tripski to Mother Russia?

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 01:57PM EDT

Obama's approval rating is in a free-fall in Ohio, considered by many political observers to be the most important swing state in a presidential election. A new survey by the Quinnipiac University Polling Institute shows that only 49 percent of the state's voters approve of the way Obama is handling his job, 13 points lower than the 62 percent who gave Obama a thumbs up in a May 6 Quinnipiac poll of Ohioans.

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 01:58PM EDT

you know they're thinking about another dumb stimulus. Obama just doesnt want to say it. If they do though, Obama will have declared in no uncertain terms that he will be the fist black, one term president, senate dems will be hittin' n' woofin' with itchy bum syndrome, and the regional republican party will be on their soap box. Politicians; put 'em all on kimono dragon island..(there's an idea for a reality tv series!)

nedim
nedim - Thursday July 09, 2009 02:06PM EDT

It is OK to shop less…we just over-consumed, especially our teens. It should have never been normal for your teen to own 10 pairs of jeans. He/She will learn to live with one or two and that’s just fine. There is no tax cut that can change this shift in consumer mentality. Yes it hurt retailers, but in a long run it is better for our economy NOT to count on crazy shopper maxing out their credit cards. Our entire economic growth in Bush years was FAKE and based on ghost money from credit cards and home equity lines. Time to get real. I know t hurts, but it hurts even more when idiots suggest that tax cuts will take us back to the same FAKE growth. IT WILL NOT and THAT IS A GOOD THING!

serg
serg - Thursday July 09, 2009 02:06PM EDT

It will take 100 years to repair the damage republicans have inflicted on the world economy....

serg
serg - Thursday July 09, 2009 02:07PM EDT

It will take 100 years to repair the damage republicans have inflicted on the world economy....

Jay
Jay - Thursday July 09, 2009 02:11PM EDT

GW Busiot took us to war and lowered our taxes anyone else smell poo.

pgh-joe
pgh-joe - Thursday July 09, 2009 02:13PM EDT

If things are so bad, why is Ford not crying the blues? Because is a well run company. Let the loosers fall and the winners will be stronger. If you want your retirement account to swell, buy and hold quality companies. Its not rocket science.

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 02:13PM EDT

Didn't GW Bush start all the corporate handouts with the AIG bailout and the Big 3 auto bailouts????? Funny how Neoclowns can justify a war in Iraq which 99% of them were completely unwilling to serve in themselves and now they pretend that GW Bush handed off a "great" economy to Obama and GW had nothing to do with bailouts??? ROTFLMFAO, I guess when you have lived in fantasyland for decades pretending the GOP has been good for this nation you can imagine anything. Hahahahahaha :-) --------- What is even more humorous is how the stupid Democrats forget the Democrats were in control of the Federal Budget and voted for the handouts. Remember stupid??? Hu hu hu hu hu How can you tell a liberal speaking? He says stupid things. I guess all that Obama juice is working because you get stupider and stupider each day. hu hu hu hu Hey stupid commenter have you seen what Obama has done to the economy since taking over? How do you explain that? How come Obama isn't helping you stupid? How come you are still stupid? hu hu hu hu

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 02:16PM EDT

Instead of Preaching to the Choir, why not hound your congressmen day in and out! Get your relatives, friends, neighbors to do the same! NO MORE SPENDING, NO MORE STIMULUS, NO MORE BAILOUTS, NO CAP & TRADE, NO OVERHAUL OF HEALTHCARE - WE CAN'T AFFORD IT!!!!!!!!!

HamM
HamM - Thursday July 09, 2009 02:16PM EDT

As soon as Obama and Co. prosecute Bush/Cheney economy wrecking crew I'll splurge and spend.

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 02:20PM EDT

Hey, stupid, that great deal GM and Chrysler got. Did you see where most of the people are getting laid off and the ones that kept their jobs are taking huge paycuts because Obama wants their salaries in the same range as the rest of the world. Hey stupid, Obama did that and the Democrats in Congress went along with it. hu hu hu hu hu hu hu

Indrid Cold
Indrid Cold - Thursday July 09, 2009 02:20PM EDT

All you suppy sidder, tax cutting, gun toaten, SUV lovin, sibling bangin, children of Jeeezuus need to get with the program. You can't cut taxes when you've already cut'em to the bone. People want and need their police and fire departments. They want schools for their kids and they INSIST that health care for all is a basic human right. Hey, maybe is makes you all feel more real and important when you see people being bankrupted by catastrophic medical conditions. But most of the world has learned that that just isn't right. So no, taxes are not going to get cut. Spending on long overdue revamping of our health care system WILL mean higher taxes and lower profits. With luck, the economey that emerges will be something other than the boom-to-bust cycles we've seen for the last thirty years. Maybe something sustainable. Want to call that socialist? Go head.

RG
RG - Thursday July 09, 2009 02:22PM EDT

GW Bush did NOT lower your taxes idiot. What GW Bush did was DEFER your taxes, nothing more. He was a huge deficit spender who from 2001-2006 with a Republiucan controlled congress spend your childrens and grandchildrens money willingly on everything and everything. It is almost laughable now watching GOP'ers who willingly and cheerfully backed all that out of control spending from 01-06 now try to pretend they are fiscal conservatives. Newsflash: there hasn't been a GOP fiscal conservative high up in our government since Goldwater and that was 40+ years ago. What was Dick Cheneys favorite mantra??? How about "Deficits do not matter"?? Yeah go tell that to all the foreign gov's who now refuse to buy our assetless backed treasury notes.

Leo
Leo - Thursday July 09, 2009 02:23PM EDT

Just think of what the retail sales figures will be in 6 months and later 12 months down the road as unemployment climbs. I'm sick of the self-appointed "pundints" at the Fed and elsewhere saying that employment in a lagging indicator. Non-sense, in this case. We are in a downward spiral, where decreasing demand is fueling unemployment, which in turn decreases demand further. Will someone out there in DC PLEASE level with us? Oh...I forgot...most politicains are liars by nature. It's in their DNA.

Gil
Gil - Thursday July 09, 2009 02:23PM EDT

Obama will ruin us all! He is doing a good job (of ruining) now!

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 02:23PM EDT

We're not going to be buying much outside of necessities for many years. Our economy has to adapt to consumers becoming more thrifty and less materialistic.

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