ajtj99's Market Pulse

[finally]

OT: Retail

Spent the morning at Potomac Mills in the outer suburbs of Washington DC. Huge outlet Mall that is a mix of upscale (Saks/Neiman Marcus) and usual suspects (Gap/Old Navy/Hollister etc).

The mall was packed around lunch time and heavy with actual shoppers. Lines were long though average purchase seemed fairly small. Discounts were ridiculous: Winter clothes were 40%-70% off at many places already on top of outlet prices. Many clearance items were marked down 70%+.

Even places like Saks offering 30%-40% across the board discounts off the price of many items and additional 50% off clearance items.

It really stuck out how many in season clothes were discounted.

This is lining up for a disastrous earnings quarter for apparel retailers. If they are not dragged behind the tool shed over the coming months they should be a great short on any strength in late December/early January.