Whether via online sales or a lower point price trade-off, one Deutsche Bank analyst says the retail slump may go deeper.
This is a question about consumer health, Paul Trussell told CNBC's "Squawk on the Street" on Wednesday. With a "bread and butter retailer" turning out such low numbers this morning, Target indicates a deceleration that goes well beyond apparel and online retail.
Consumers are still spending on home improvement, eating out, traveling and entertainment, but apparel could be the first category from which consumers will start to shy away, Trussell said.
On the other hand, Chief Financial Strategist at Charles Schwab Liz Ann Sonders said it's more likely that this slump is due to online retailers who offering lower prices and more convenient distribution.
"We have to look at consumers through a different lens these days," she said, noting that consumption trends during the pre-debt bubble are not comparable to now. "We have a much smarter consumer, a more conservative consumer."