Thursday, November 4, 2010

Retailers Tally a Mixed October as Sales Rose 1.6%

Recently, many retailers are greeting an increase on sales. At the 28 stores tracked by a data collector Thomsan Reuters. An index that excludes the nation’s largest retailer--Wal Mart. There was a 1.6 percent increase in sales at stores open at least a year. This seems to be a good news for American retailers who have been suffering a severe influence by financial crisis since last year. But, the problem is that this increase can't be considered as a indicator of the economic regeneration because the increase rate is the lowest since April. In my opinion, the concerned about the economy and the macro issues is the main point that drives their purchasing behavior. People in American still worry about the economic depression and have no confidence about a better economic rebound is coming soon. So they prefer save their money for the later time than cost a lot to enjoy today. I think the government should do something to stimulate consumers such as: reduce the lam sum tax during this period, some big city can reward the retailer to let them make a discount on productions etc. This would either let consumers feel more satisfied or could incourage them to buy more stuffs. So why doesn't the government do something to get this Win-Win goal.

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