The Teetering State of Retail

Retail is experiencing problems. Those problems relative to auto sales and restaurant activity which have been covered by the main stream media. Make no mistake, these sections of retail are leading indicators of problems ahead. They need to be watched carefully and they could cause fear and risk off in stocks. There are mixed signals regarding the state of retail, especially regarding job openings. According to economist Tim Duy, job openings seem to be strong: By Permission But there is a definite slowdown in hiring and this is showing a bad trend in retail: By Permission So, layoffs have not started. But that doesn't mean that retail is not slowing. It is. And for the auto industry, the sales force is making fewer commissions. That is like a partial layoff. Waiters and waitresses make money through tips. If there are fewer customers and fewer tips, those act as a partial layoff as well. We can see the trend happening over years, that labor is being crushed b