Last week I featured a posting of a Tiffany and Co increase in earnings. It seemed at last that all the high end spending had returned to the market and finally there was something positive to talk about.
However, today with May retail data being released it appears that the opposite is in fact true for the lower end of the market where retail sales appear to be in decline. For those who love the US you will know how good the shopping culture is. You haven't seen a sale until you have seen the likes of JC Penneys and Macy's (my personal favourite). However both these stores reported sales declines during the month.
The true test for retail however will be the relatively staple products where items like food, beverage, clothing and gasoline sales would indicate whether or not to worry. In all these cases the report shows that sales are behind the prior month but still well above 2009. Still the fact that sales are a few billion less than last month are what will drive sentiment.
On a positive note, after including motor vehicles and cars the retail sector should be $1.5bn ahead of prior month.
What's Up Jono? http://whatsupjono.blogspot.com
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