"retail spending soars in october (nytimes)."
November 14, 2001 11:20 AM Subscribe
"retail spending soars in october (nytimes)." huh? frankly, i've cut my spending by about 60%. is anyone really shopping more, or is this a spin job?
Wait (*puts dunce's cap on*)he cuts his spending by 60% and you double yours and add 20% on top of it...yeah, then I guess it more than makes up for it. So, not a spin job then. Seriously, I hope it's true as shopping is just about the best indice of faith in the future there is. (Hope it's not all due to gas-masks, Cipro, K-rations and canaries, that's all).
posted by MiguelCardoso at 11:40 AM on November 14, 2001
posted by MiguelCardoso at 11:40 AM on November 14, 2001
people who have lots of money have been buying cars - a 26.4% increase from a year ago. The car manufacturers are pretty much all offering 0% interest. you can't beat that. (Well, you could make cars 20% more fuel efficient, but who would want that?)
posted by panopticon at 11:49 AM on November 14, 2001
posted by panopticon at 11:49 AM on November 14, 2001
Now that everyone who was thinking of buying a car has done so, just wait to see how bad retail sales look in the months ahead!
posted by Carol Anne at 12:30 PM on November 14, 2001
posted by Carol Anne at 12:30 PM on November 14, 2001
What I worry about is people with no money buying cars ... the difference between 0% and 2.9% (a promotional rate most people could get on many cars all summer) is less than $50 / month in the first year and less after that (over a 5 year financing). Given the extra insurance you have to buy on a financed new car, the difference starts to look very marginal indeed ... if you couldn't afford a new car last summer, you really can't afford one now.
posted by MattD at 12:31 PM on November 14, 2001 [1 favorite]
posted by MattD at 12:31 PM on November 14, 2001 [1 favorite]
I'm buying the same, if not more as compared to last year at this time. And I go out to eat about 50 times more per month than I used to.
posted by howa2396 at 12:51 PM on November 14, 2001
posted by howa2396 at 12:51 PM on November 14, 2001
Your resident retail management person here: Sales soaring? Nobody clued me in... Maybe I'm just in the wrong kind of retail...
posted by chlumani at 1:03 PM on November 14, 2001
posted by chlumani at 1:03 PM on November 14, 2001
I drive by several malls and such every day...I kept commenting on the fact that the parking lots were packed compared to before September.
Parking spaces as an early economic indicator on the next Wall Street Week with Louis Rukeyser
posted by Mick at 1:24 PM on November 14, 2001
Parking spaces as an early economic indicator on the next Wall Street Week with Louis Rukeyser
posted by Mick at 1:24 PM on November 14, 2001
Great, now the average American is even further in debt.
Except now it's patriotic rather than stupid, apparently.
posted by jragon at 1:30 PM on November 14, 2001
Except now it's patriotic rather than stupid, apparently.
posted by jragon at 1:30 PM on November 14, 2001
I think the reason retail is considered to be 'soaring' in October is because how dismal September was for retail.
posted by Neb at 1:37 PM on November 14, 2001
posted by Neb at 1:37 PM on November 14, 2001
From the article: "Excluding car sales, overall retail sales in October rose by 1 percent."
That's a pretty pathetic recovery given how bleak the September numbers were.
posted by electro at 2:20 PM on November 14, 2001
That's a pretty pathetic recovery given how bleak the September numbers were.
posted by electro at 2:20 PM on November 14, 2001
marknau: I prefer "from one data point you can extrapolate in any direction" :)
posted by electro at 2:21 PM on November 14, 2001
posted by electro at 2:21 PM on November 14, 2001
the difference between 0% and 2.9% (a promotional rate most people could get on many cars all summer) is less than $50 / month in the first year and less after that (over a 5 year financing).
Which would be a salient point, but the major car manufacturer 0% financing deals are only for terms of 36 months or shorter. If you are financing $15k over 36 months, that's still a $415 (roughly) payment every month and I don't think people are rushing into that kind of financial commitment willy-nilly just because there's no interest.
As for anecdotal reviews, on Monday, when people had the day off for the holiday, we discovered the malls and the mass marketers (Wal-Mart and Target) were packed. There were no major sales happening, but people were out and they were buying, and many were buying what we were -- winter stuff. We dropped a nice chunk of change outfitting seven kids for the winter with boots, coats and Blues Clues mittens. We bought stuff to winterise the cars, and got the last of our Hannukah gifts. Tis the season for all of that, retail sales will almost certainly show more growth in November and December.
posted by Dreama at 3:43 PM on November 14, 2001
Which would be a salient point, but the major car manufacturer 0% financing deals are only for terms of 36 months or shorter. If you are financing $15k over 36 months, that's still a $415 (roughly) payment every month and I don't think people are rushing into that kind of financial commitment willy-nilly just because there's no interest.
As for anecdotal reviews, on Monday, when people had the day off for the holiday, we discovered the malls and the mass marketers (Wal-Mart and Target) were packed. There were no major sales happening, but people were out and they were buying, and many were buying what we were -- winter stuff. We dropped a nice chunk of change outfitting seven kids for the winter with boots, coats and Blues Clues mittens. We bought stuff to winterise the cars, and got the last of our Hannukah gifts. Tis the season for all of that, retail sales will almost certainly show more growth in November and December.
posted by Dreama at 3:43 PM on November 14, 2001
What I worry about is people with no money buying cars ... the difference between 0% and 2.9%
Don't worry. I just bought a new Toyota at the 0% rate. You still have to qualify (they said a 700 credit score was the minimum). Since the 0% rate is only offered for a 3 year term, a decent downpmt is necessary unless you want huge monthly payments.
posted by groundhog at 6:50 AM on November 15, 2001
Don't worry. I just bought a new Toyota at the 0% rate. You still have to qualify (they said a 700 credit score was the minimum). Since the 0% rate is only offered for a 3 year term, a decent downpmt is necessary unless you want huge monthly payments.
posted by groundhog at 6:50 AM on November 15, 2001
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posted by Doug at 11:29 AM on November 14, 2001