Big retailers hit by low consumer spending

Larger retailers have had to sail through rough ways in the last few months and most of the competition is coming from online competitors such as Amazom (AMZN). Despite lower prices for gasoline and higer wages, consumers are not spending as much as before and it seems many are rather settling outstanding debts and saving money.

Retailers such as Best Buy's (BBY) profits tumbled in the last quater of 2015 and a big drop in sales is forcasted for the company in the current quater. Kohl's (KSS) also announced that it decided to close 18 of its stores this year and expects their sales figures to take a plunge. Sears (SHLD) decided that it would close more than 50 stores this year due to its massive underperformance in sales. It seems like companies are prepared to cut costs where it may be needed however, attracting more customers will prove a more challenging task.

Other retailers such as Macy's sales have taken a deep plunge, but its stocks have risen because of the company deciding to close several of its stores. Gap(GPS) has also reported a decrease of 5% in its sales in 2015 and the company seems trouble keeping up with other fashion outlets such as H&M and Zara.Retailer TJX (TJX) reported a 6% increase for the fourth quarter and Target (TGT) has also shown positive growth in the last few months. The closure of several Walmart(WMT) stores and expanding into the online market have worjed out well in Target's favor.

 

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