I went to the mall yesterday to try to gain a sense of whether consumers are buying and when we might see a recovery. The first thing I noticed was that the mall parking garage was nearly empty, but then I realized that yesterday was only the second day since Memorial Day when it had not been raining here in New England and so perhaps the lack of attendance might have had something to do with people’s need to ingest a bit of sunshine.
What was in evidence were giant sales – not just 20% and 30% sales, but signs saying “up to 60% off’ and “up to 70% off”. Now that’s really a sale, and that is good, because at the very least inventory is being worked down and that is a first step in the process of getting ready for a recovery. Of course, the downside of “For Sale” signs like is that they don’t bring much profit to the retailers.
What is it going to take to get a recovery? The Federal Government is throwing as much money as it can find at the economy, but the response seems to be anemic at best. Why?