Today we have another day, another wave of weak retail sales reports…
Weak first-quarter earnings by retailing juggernauts Macy’s (M) and Walmart (WMT) have investors and industry insiders questioning the financial health of U.S. consumers. Howard Davidowitz, a longtime consultant to the retail industry, says retailers catering to the middle-class will continue to miss profit and sales forecasts for the foreseeable future.
“Eighty percent of America is in a recession,” he argues in the video above. “One in six Americans are in poverty. Forty-nine million are on food stamps. Americans don’t have money.”
Davidowitz rejects the notion that cold, wintery weather in the Northeast prevented individuals from shopping this winter. He believes it’s the economy that is keeping shoppers at home.
“Walmart [earnings] have been down for six straight quarters,” he says. “The economy is structurally weak. People can’t afford to shop at Walmart.” Here is a direct video link to an insightful discussion.