Consumer Collapse: Retailers Report WORST Sales Numbers In Three Years

With employment continuing to slide and the American consumer running out of money to spend, the perception of an economic recovery is very rapidly being exposed as nothing more than a mirage:

The arrival of summer has been less pleasant than expected, at least for U.S. retailers. According to Thomson Reuters, more than two-thirds of U.S. retailers missed expected sales totals during the month of June – marking the worst June sales period in three years.

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Although there are no simple answers for the retail downturn, a lack of consumer confidence is widely believed to have been the driving force behind June’s dismal sales figures. “Consumers are holding back, cautious and losing confidence,” said IHS Global Insight economist Chris Christopher.

Sluggish sales are a problem throughout the entire retail industry. But the consequences of an off month can be especially problematic for smaller retailers, many of whom are competing with big box stores.

The loss of consumer confidence can be traced to several factors including recent stock market declines, the European financial crisis, China’s slowing economy and lackluster May employment growth in the U.S. However, weather may also have played a role at the end of the month with tropical storm Debby along the southeastern seaboard, and severe storms in the mid-Atlantic region. Following an unexpected drop in sales, Jay Stein, interim chief executive at Stein Mart reported, “The weather distractions we endured in June in Florida and many of our other markets challenged our business.”

from Gaebler.com

There are no jobs and the credit cards are maxed. Buckle up.