An interesting article accompanied by a short video. It discusses changes in consumer preferences and is a recap of consumer spending behavior over 2015. The article does not venture into forecast for 2016, which would be interesting to read, since with a drop in sales, there definitely would be an increase in inventories and it would be interesting to see how retailers will sell them this year. One economist in the video points out at the fact that this change (drop) in retail sales is because of consumers wanting to save more, would that impact money flow this year or not is also something to look out for.
Here is the link to the article:
http://www.bloomberg.com/news/articles/2016-01-15/retail-sales-in-u-s-decrease-to-end-weakest-year-since-2009
This is also an interesting case study of numbers about retail sales forecast for 2016: http://www.tradingeconomics.com/united-states/retail-sales/forecast
This was an interesting article. I have some immediate family members that are involved in the retail industry and they have said the same. The many different trends in how consumers are shopping has also had several interesting effects on the industry as a whole. I imagine that 2016 will be just as bad.
ReplyDeleteThis was an interesting article. I have some immediate family members that are involved in the retail industry and they have said the same. The many different trends in how consumers are shopping has also had several interesting effects on the industry as a whole. I imagine that 2016 will be just as bad.
ReplyDeleteThis article is indeed interesting, because even though the article does not directly forecast sales in 2016, it does provide insight that consumer spending is continuing a downward slope. With an increase in inventories, companies will lose money and perhaps more discounts might be offered to offload the extra inventory. 2016 from initial indicators looks bad, however there's always a chance of a rally.
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