U.S. Retailers Continue Their Slump

I keep tabs on the what occurs with retail because it is the first sign of consumer weakness, which in my view, gives me a first read into what lies ahead for the media and technology companies, even those solely dependent on enterprise revenues. Doesn't look good. Also, doesn't look good for the online retail names, that is unless the assumption can be made that online is cannibalizing offline sales at an accelerated pace.

From the Wall Street Journal: U.S. retailers reported some of the weakest sales figures in years for November, which included the Black Friday kickoff to the holiday shopping season.

Gap reported a 10% drop in same-store sales, while Macy's fell 13% and Nordstrom dropped 16%. Target reported a 10% drop, worse than expected, though Black Friday sales were stronger than the rest of the month. But Wal-Mart topped estimates on increased store traffic and purchase size.