Retail Sector: On Road to Recovery?
YES we are in the midst of Mercedes Benz Fashion Week FW10 prep BUT that doesn't mean the retail sector or the economy comes to a standstill. On Thursday I was on CNBC to talk about same store sales and whether or not the positive upswing was an indication the economy is recovering. My verdict: definitely not. January is typically the easiest month when it comes to comps and if you are doing a year over year comparison, most retailers reported horrible numbers this time last year therefore any positive numbers being reported will of course seem amazing. Also, retailers notoriously targeted the bottom line over the past months which means stores were closed, jobs were cut and inventories were slashed. This contributed to the incredible turnaround companies like Abercrombie & Fitch (ANF) and Saks Fifth Ave (SAKS) experienced. Consumer spending has a direct correlation to jobless claims and the unemployment rate. Once both of those numbers come down significantly, we will see substantial numbers for these retailers. To check out the video click here.