Summer sales

NEW YORK — As consumers get ready to celebrate July Fourth, many merchants already have dismissed summer as a washout.

Macy’s flagship store has racks of summer tops, swimwear and dresses marked down as much as 50 percent, while luxury retailer Bergdorf Goodman is slashing prices on designer goods by as much as 70 percent. Meanwhile, piles of clothing, as well as barbecue grills, tents and gardening tools, are bypassing stores and heading straight to liquidators as merchants try to conserve their cash.

Such deep discounting so early in the season is great news for bargain hunters, but it’s a worrisome sign that shows a further weakening in retail sales since the end of May.

Consumers’ confidence in the economy, which had surged in April and May, is projected to be unchanged for June when The Conference Board releases figures today. And major retailers will release June sales results next week.

While unusually rainy weather across a broad swath of the country has dampened business, some analysts wonder whether shoppers are waking up to the harsh reality that the economy won’t be getting better soon — even as consumer spending makes up 70 percent of economic activity. That doesn’t bode well for merchants, who need to get rid of summer inventory quickly to make room for fall goods.

Consumers’ confidence has been rebounding since February, fueled in part by the stock market rise.


by the associated press