I found this very interesting Newsweek article about the change of Consumers´buying habits. As our economy worsens, consumers continue to buy groceries, health products and gas at any price. They are cutting back on furniture, appliances, fancy restaurants, vacations, clothes and jewelry.
It seems the mood of the nation this summer will be staying at home for family barbecues. Also, it appears Wal-Mart will not be impacted by the downturn in the economy.
My Question to my readers is, will you be affected? Do you think the Immigration issues will impact the Slowing Economy?
As Goes Wal-Mart, So Goes the Nation
For a better understanding of our budget consciousness, check out the world's largest retailer.
By Jennifer Barrett Newsweek Web Exclusive May 7, 2008
No matter how bad the economy gets this year, Americans aren't about to stop buying groceries or gas. But as fuel tops $4 a gallon and the costs of basics like bread and milk rise, consumers are learning to economize. How? For a clear view of our readjusted shopping habits, head to Wal-Mart. With an average of more than 100 million customers a week, the world's largest retailer offers a telling glimpse of how consumers are responding to the economic downturn. Not surprisingly, the company has largely benefited from the increase in budget-consciousness: it reported record sales of more than $106 billion for the quarter that ended Jan. 31, the majority of that coming from its domestic stores. What's hot and not? During a presentation to analysts last week, Eduardo Castro-Wright, CEO of Wal-Mart's U.S. stores, pointed to strong sales in groceries, health and wellness products, as well as flat-screen televisions and other consumer electronics. Clothing and furniture, however, are not selling well.
Apparently, new wardrobes and home-decorating projects are giving way to economic woes. Recently, the Labor Department said clothing prices nationwide fell by 1.3 percent in March, the largest monthly drop in nearly a decade. Recent markdowns, say analysts, haven't done much to move clothes off the racks or furniture off the showroom floors. Furniture stores have reported slower sales in the first quarter of the year. "