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Dec 5, 2008 7:47 am US/Eastern
Hard Times For Consumers Mean Drop In Retail Sales
TOWSON, Md. (WJZ) ―
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The economic crunch is playing out on the retail scene as conservative holiday shoppers create a drop in sales.
CBS
The economic crunch is playing out on the retail scene as conservative holiday shoppers create a drop in sales.
Gigi Barnett reports upscale malls like Towson Town Center are the biggest retail losers this holiday season with smaller crowds, declining sales and no change in sight.
You can find Viola Durst at the neighborhood grocery store, but you won't see her at the mall.
"First of all, I don't have the money to go shopping in the mall, and you need food more than you need gifts and all like that. That's why I'm at the grocery store," said Durst.
Hard choices like that are contributing to declining sales nationwide in a crucial Christmas season critical to the survival of major and small retailers like those at Ruxton Station.
"We will actually maybe have up to 60 percent of our store on sale, which is extremely unusual," said Josie Worthington.
But even with major national retail store discounts post Thanksgiving on Black Friday, sales started strong then stalled.
The recession made November the worst in 40 years with sales at Macy's falling 13 percent, JCPenney down 12 percent, and after deciding not to lower prices, Abercrombie and Fitch sales are down 28 percent.
"Negative numbers that are coming in, I don't think any of them, though disappointing, are unexpected," said an economist.
So far this year, the only retailers doing well are discount stores. Many are reporting sales well above last Christmas season.
Higher traffic is going to discounters in part because of cautious customers like Christine Black.
"Just shopping less, I guess really," said Black.
Unemployment is at the heart of the struggles Viola Durst's family is enduring.
"Well, I was working and made more money, and you know the money's slow now, so it's kind of hard," said Durst.
Even though Durst is going through tough times right now, she's still got her optimism. She believes things will soon turn around.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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