Major Retailers Report Sluggish Sales in August
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The country’s major retailers today reported ho-hum August sales, reflecting consumer caution in the face of a shaky economy and worries about war in the Middle East.
Several national chains did adequate business during the start of the traditional back-to-school season, but overall the retail industry rang up disappointing revenue.
“While there was variation among the companies, we would portray the results as sluggish,” analyst Jeffrey Feiner of Merrill Lynch & Co. said.
Given the negative impact that the Persian Gulf conflict has had on consumer confidence and the current economic weakness, retailers are concerned about how business will be in the important Christmas season, when they typically make 50% to 60% of their annual profit.
“Retailers are already cutting back on merchandise commitments as well as reducing expenses in order to protect profitability,” Feiner said.
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