Home fashions and non-essentials hurting retailers

photo courtesy of http://www.wisebread.com/peak-debt

In the failing world economy, it seems like every other day we are hearing about another retailer that is filing for chapter 11 bankruptcy. Its almost surreal for me, as many of the companies have been around since I was a child, and hence I have grown accustomed to them being a staple retailer.

In researching slumping home fashions sales, I found an article on msnbc.com reporting that Target and Lowe's have both reported a 24% profit drop. The fact that these retailers, who to me are massive industry leaders, are losing money is truly scary. The recession is obviously becoming more serious, and its reflection on our society is getting much deeper.



The article quotes the main reason for this profit slump is, "...rising unemployment, falling home prices and tight credit would continue to pressure its business." The fact that people aren't buying non-essential items is going to make or break many retailers in this economic recession. What started with a housing slump has led to a massive economic crisis, proving that the greed of few can effect us all.





Cited Article: http://www.msnbc.msn.com/id/27766787/

Guest Speaker Review

Amy Butler Fabric Bolts.  Image courtesy countryliving.com

I really enjoyed Elyse's presentation today.  I found it refreshing to listen to a former student who knows our program, went through the same classes and demonstrated how everything connects.  For example, her demonstration of how blogging has translated from school to work.

The reason  I liked Elyse's presentation so much was the abundance of things she discussed were things I didn't know already.  Primarily, that Jay McCarrol is designing fabric now!! and that Wal-Mart is closing its craft department.  The first is of personal interest to me, as I think Jay is the best Project Runway designer to come out of all five seasons.  I'm sure I'd love his fabrics too!  The second is kind of scary to fabric industry, as Wal-Mart is undoubtedly many companies' largest buyer.  Its unfortunate that many textile mills might go bankrupt because of Wal-Mart.  Just one more reason they are too big for OUR own good!

I love the idea of former students talking to the class- its great to see someone doing well who had access to the same information we have.