Your Economy (No Politics)

[ilovedastock]

IMO, two key points in this retail report:

<Gift card sales also pushed December business into January or even later; gift card sales are only recorded when they are redeemed.>

<Wal-Mart warned that its profits would be disappointing> while <Luxury retailers had a strong December>

Gift cards are great for retailers because they help even out the flow of shoppers and gift card buyers are not as discriminatory - they aren't as careful about getting the best deal so retailers don't have to discount as much. The fact that luxury retailers are doing well tells me that, overall, consumers are not hurting.

IMO, I think the headline (Retailers Face Uncertain 2006 After Holiday Shopping Season Is Disappointing for Some Merchants) is painting a more bearish picture than is warranted.