I don't know what's happening back in the Bay Area, but it's a lot easier to find a parking spot in Florida malls this year,when my sister and I go shopping. The real estate situation has affected more than the stock market. Holiday shoppers are staying away in droves. Gone are the days when homeowners could "pull a little equity" out of their rapidly appreciating houses and hit the malls to buy Christmas gifts. With Florida, Nevada (especially Las Vegas) and California posting the nation's highest foreclosure rates for the past several months, retailers are starting to see repercussions.
Many stores are curtailing inventory levels and starting earlier sales and promotions,and discount stores will probably benefit from the "trade down" effect,as cash-strapped consumers start bargain hunting. The local Costco here in Lake Worth was mobbed.
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