New Delhi, Nov 25 : The US retail sector, which is on a downward spiral largely because of declining consumer confidence on the back of credit crunch, is likely to see some recovery by early 2010, analysts feel.
Retail sales in September and October fell dramatically in the US on the back of global economic turmoil and the trend is emerging as a major concern among economists across the US. The coming holiday season may not be 'merry and bright' for this segment .
According to the US-based ShopperTrak RCT, which provides retail intelligence solutions and services, in the upcoming holiday season retailers will most likely feel the sting of a lagging economy and lowered consumer confidence during this critical shopp ing period.
As per ShopperTrak's Retail Traffic Index (SRTI), total US foot traffic during the 2008 holiday season is expected to decline by nearly 10 per cent as compared to last year.
“With all of the difficulties in the US economy it will take some time for retail sales to rebound. ...We will likely begin to see an economic turnaround until the later half of 2009 or even early 2010,” responding to an e-Mail query the US-based Retail Management Consultants President and CEO, Mr George Whalin said.
A number US retail giants including JC Penny, Aber Crombie, Lowe's, Traget and Saks have reported a fall in their earnings and sales in the latest quarter.
However, Walmart managed to register a growth of 10 per cent in its net income at $3.13 billion in its third quarter ended October 31.
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