Consumer

Last Hope For Holiday Shopping Frenzy: The Few Who Can Splurge

Consumer spending hasn’t exactly been hot. With one big exception: auto sales. At 20% of total retail sales, they’ve been phenomenal and propped up overall retail sales. But in September, there was a downdraft. The calendar got blamed. And in October, there was the government shutdown and debt-ceiling debacle. And now all bets are off.

Hiding Inflation: People Get Bigger, Airline Seats Get Narrower

Selling airline tickets to our increasingly pauperized consumers is an art. And hiding price increases is an even greater art. While there are people who don’t worry about the price as they luxuriate in first class, others aren’t so lucky. For them, the industry has a special treat: squeezing their hips.

Corporate Disease: Workers Are A Cost Not A Productive Resource

The amount in Federal assistance received by families of workers in the fast-food industry, who’re dogged by low wages, part-time work, and scarce employer-provided health benefits, amounted to $7 billion per year. A way for the $200 billion industry to shuffle off part of the costs of doing business to the hapless taxpayer.

Retail Woes: They Shopped Till They Dropped

Men’s retailer Jos. A. Bank warned that sales in the quarter plunged 11%. OK, it suffered from management foul-ups, goofy marketing, obnoxious ads, and – at least at the store I looked at – dusty shirts on the shelf. But it isn’t an outlier. It’s the latest entry on a laundry list of revenue-challenged retailers whose woes are spreading relentlessly across the US.

“Wealth Effect” Mucks Up Housing, Costs Homeowners Dearly

Home prices have jumped around the country, in some cities over 20% on an annual basis. “Recovery of the housing market,” is what this phenomenon is called. Everyone from President Obama on down has taken credit for it, particularly the Fed, whose handiwork this is. But there is a very ugly fly in this illusory ointment.

The Exquisite Art Of Marketing To Pauperized Consumers

People in the upper income categories, those who don’t have to worry about the price of toilet paper, have seen their incomes rise over the years. The rest are in a downward spiral: median household income, adjusted for inflation, has dropped 7.8% since 2000. The lower end got hit the hardest. For these folks, tissue makers have a special strategy: desheeting.