A new report issued by the Commerce Department has shown that average consumer spending fell in September for the first time in five months, a development that has been attributed to the ending of the Cash for Clunkers automotive rebate program. This drop in consumer spending matching analyst estimates and follows a 1.4 percent jump in the previous month.
Consumer confidence has taken a hit in recent months because of stagnant wages and growing unemployment, two factors that have raised worries that consumers will cut back spending in the coming months.
Analysts also worry that consumers will grow reliant on government programs, …read more

Wal-Mart has released a sales forecast for its fiscal year ending January 31 stating that the retailer expects to see a 1 to 2 percent gain in annual sales, a figure that marks a sharp slowdown from Wal-Mart’s previous forecasts. However, Wal-Mart expects its sales to rebound in the following year, seeing sales rise 4 to 6 percent.
In addition to expecting larger sales, Wal-Mart also anticipates to spend an additional $1 billion this year over last as it continues to upgrade its stores and to expand its business into new markets. Wal-Mart has stated that it does not expect any …read more

Although it may come as no surprise to many people still struggling due to the economic situation, the demand for luxury goods continues to shrink. The iconic jewelry retailer has posted a dramatic drop in fiscal first-quarter earnings, which plunged 64 percent. Tiffany has blamed this drop in earnings on shrinking sales of the highest-prices goods.
The good news for Tiffany & Co. is that the decline in sales seems to be tapering off for the most part, except for the lack of interest in their high-end jewelry. Although sales are picking up comparatively quickly for Tiffany overseas, its American operations …read more

High-end toy retailer FAO Schwarz was purchased Wednesday by toy giant Toys-R-Us in a move that marks the second time in the last six years that FAO Schwarz has changed hands. In 2003, firm D.E. Shaw paid more than $41 million to buy out the ailing toy company from bankruptcy. The details of the yesterday’s deal have not yet been released.
Toys-R-Us and FAO Schwarz are owned by three reputable private equity firms: Vornado Realty Trust, Bain Capital, and KKR. Vornado Realty Trust has owned a third of Toys-R-Us since 2005 and joined forces with the other two firms in a …read more

As our economy continues to suffer, 70% of shoppers say that they will spend less than usual this holiday season. One way to save money is to buy on eBay, Amazon, and other online sites. Shoppers also indicate that one way to refrain from impulse buys, or over buying is to stay out of malls and retail stores. Are these surveys right? Take our holiday shopping poll and let’s find out!