'Abercrombie & Fitch and American Eagle\r'

'The obligate reports that U.S. retail stores rush posted only a modest improver in gross sales of 2.5 per penny for May, which talent be a sign that consumers are taking a break from shopping.This figure was 3.3 per penny for January, 4 per cent for February, and 4.8 per cent for March and April combined. High-end retailers (such as Saks, Nordstrom, TJX Companies and Ross Stores) and apparel stores did well, and bank discount chains (such as Costco, BJ’s Wholesale, Fred and Target) reported the strongest sales growth of any sector with a 5.3 per cent increase.Shops selling teenager clothing (such as Abercrombie & deoxyadenosine monophosphate; Fitch and American Eagle) suffered a decline. Reasons behind the meanwhile are believed to be bad weather at the beginning of the month and the late Memorial Day, since almost companies choose to include Memorial Day pass sales into their June reports.Analysts believe that lackluster sales might be a sign that recoveries come in waves. Stronger growth is expected during the summer month, due to pen up demand and start of the school year.The importance of the article is associated with the fact that retail sales are a good indicator of the pace of economical recovery. precipitously contraction of consumer spending has exacerbated the recent financial downturn, and it took a long time for spending to rebound. Consumer spending is employ as an indicator of economy’s wellness because it is first of all related to consumer expectations and confidence levels.Furthermore, it indicates whether economic resources flow freely among various economic agents: companies postulate sales revenues to expand their production, which in turn leads to bank line creations, and decreasing unemployment levels mean that more people deliver disposable income to spend at stores. Coming O.K. to the issue of consumer confidence, if citizens are optimistic about prospects of the economy, they race to spend even more, pr opping up the production-consumption cycle.Works citedHauser, Christine. â€Å"U.S. Retailers Report dull Sales Gains.” 3 Jun. 2010. New York Times. 5 Jun. 2010. Web. <http://www.nytimes.com/2010/06/04/ phone line/economy/04shop.html?ref=economy>\r\n'