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The Bad News Behind The Retail Financial Numbers

Written by Evan Schuman
February 14th, 2008
A small 0.3 percent increase in retail spending in January announced on Wednesday caused optimisim to spread, as investors hoped that perhaps the economic impact on retail won't be so bad. A closer look at the numbers, however, suggests that the original pessimism was the right sentiment. Yes, government stats included boosts in car sales and gasoline—which are not strictly retail segments—and they reported increases in clothing sales at a time that major apparel retailers were announcing down figures. But there are two bigger problems.

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