Question: Where Are You Shopping These Days?
Answer: Not at malls, apparently (chart courtesy of Bloomberg).
This chart shows how retail traffic (light green) and luxury retail traffic (dark green) have been dropping consistently over the past 18 months. Not only has foot traffic been dropping but so have retail stocks. Here’s a taste of the carnage that occurred last week (from NY Times):
RETAIL ROUT Shares of the department store chain Nordstrom dropped 12.9 percent after the company released disappointing quarterly results late Thursday. J. C. Penney shares dropped 2.5 percent after the company reported disappointing earnings on Friday. Shares of Dillard’s lost 0.3 percent after the company also posted disappointing profit and sales late Thursday.
Retailers’ stocks have plunged this week after a series of weak reports. Nordstrom is down about 17 percent, while Macy’s has fallen 15 percent and Kohl’s is down about 11 percent.
Might be an interesting ten minute Webquest to have your students research the reasons behind this decline in retail companies.
- How do you shop today?
- What are the fundamental causes of it based on your research?
- Do you think that teen buying habits have anything to do with this trend?
- Is now a good time to invest in retail companies like Macy or Nordstroms?
Check out the recent NGPF Blog post: What is Top Online Shopping Site For Teens?
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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