Discounters Rule the Retail Landscape

June sales results proved that discount chains are the ones winning the battle during this recession downturn.

According to ICSC’s monthly same-store sales survey, luxury stores experienced a 10.9% year over year decline in June, while discounters rose 5.1%. Wal-Mart’s 6.4% gain compared with Nordstrom’s 18.6% decline tells the plainly tells the story.

These figures probably don’t shock anyone.

But the question is, how long will it take the middle-of-the-road chains and former darlings of the industry like Target (only up 0.4%) and JC Penney (down 2.4%) to adjust?

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6 Responses to “Discounters Rule the Retail Landscape”


  1. 1 TeenyTiny July 11, 2008 at 1:48 pm

    It will be a long time if the current crisis deepens, and in case you haven’t noticed the news today, the government is considering bailing out Fannie Mae and Freddie Mac. It won’t be long before the pension fund and stock markets show significant declines. I wouldn’t hold my breath for 18 months, if that’s what you’re asking.

  2. 2 Fred July 11, 2008 at 2:20 pm

    I like when disoucnters rise like 70 perscent, because what that impies to me is THAT I can now goes to 99 cent stores and buy lots of toilet paper and the like!

    Thers some cool places near my hous where I bought lots of gummie bers and fruit snacks in additions to long life low energy buls that saves a bout a ten spot over the course of time and not only that is much gooder for the environments!

    So I hope the conomy keeps tanking and doin bad because then its good for alll concerned, expecialy those who like to frequent htese stors.

  3. 3 joe July 14, 2008 at 9:38 am

    I don’t know about the majority of US consumers, but fuel expense has started to take a larger slice of my capital expenditures! No longer do I just jump in my pickup truck and run to the nearest major shopping center. I may elect to shop online, shop local, or NOT at all!

    CONSIDER THE BENEFIT TO SMALLER AND MID-TIER CITIES OF HAVING A CAPTIVE CONSUMER. NO LONGER DOES THEIR CONSUMER DRIVE TO THE NEAREST MAJOR METRO MARKET TO SHOP… ANY AVAILABLE DISPOSABLE INCOME MAY BE SPENT LOCALLY….

    AND THINK OF THIS, THE MAJORITY OF SMALL TO MID-TIER CITIES DON’T HAVE NORDSTROMS, DILLARDS, OR TARGET. NOR IS THERE A VAST SELECTION OF MID BOX RETAILERS LIKE: BED BATH & BEYOND, BEST BUY, PETS MART, OR TJ MAXX TO NAME A FEW… BUT THERE IS NORMALLY A DISCOUNTER OR TWO SUCH AS WAL-MART, FAMILY DOLLAR, DOLLAR GENERAL; NATIONAL DRUG (CVS OR WALGREENS)… CONSUMERS HAVE CHOICES CLOSE TO HOME.
    AND THEY WILL CHOOSE TO DO SO…….

  4. 4 Dave July 14, 2008 at 3:04 pm

    With food and gas prices at record highs, unemployment up, and dropping home values wiping out consumer wealth, together with tightening credit, the U.S. consumer is being squeezed and battered by a financial “perfect storm”. But if Obama the virtual socialist is voted in, and, working together with a Democratic Congress raises taxes to fund welfare and other entitlements and keeps his promises to sock it to U.S. businesses which is the only strong sector in the economy, our economy will be crippled for years to come instead of just experiencing a mild to moderate recession. We can say hello to the Carter years again…

  5. 5 MikeF July 15, 2008 at 8:42 am

    Say hello to the Carter years again, I thought these were the Carter years again??

  6. 6 TeenyTiny July 17, 2008 at 3:21 pm

    The Carter Years were the Days of Wine & Roses, nope, these years are a return to the Weimar Republic, circa the 1920’s. Our currency is falling off the cliff and hyperinflation is the norm.


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