Hunkering Down

Turns out January’s retail sales figures weren’t too encouraging. While January isn’t a very important month for retailers, it only confirmed the downward trend in retail sales.

As this AP article says:

“They are hunkering down,” said Chris Donnelly, a partner in the retail practice at consulting group Accenture. “There is this key focus on survival.”

While news like this leaves retailers cold, it’s actually what should be happening right now. Every market correction is equal to or greater than its previous exuberance.

When people overspend, at some point they have to underspend. That’s just how it works. And since so many people overspent — all at the same time — there is a massive market correction underway.

I personally never went crazy with consumer spending. So my current retail buying habits are essentially unchanged. We still buy clothes occasionally, etc. No more and no less than before.

(In fact, my wife has to drag me out of the house once or twice a year to update my wardrobe. I’ve been known to wear the same shirt for 7+ years before realizing, “You know, I should probably get rid of this shirt.”)

What got me into debt trouble was spending money on so-called business opportunities. It’s been a long time since I’ve been in that market/mindset, and I’ve come a long way (thankfully).

But there are pull-backs in nearly every market. Both retail and business opportunities are finding it’s harder to hit their sales numbers. (I’m unique in that I get a first-hand view of this through my clients’ businesses.)

So is it time to hunker down? I think that’s good advice. Lay-offs aren’t going to end anytime soon. In fact, every month that passes, the “closer to home” it gets. People I know are now losing their jobs.

And unemployment isn’t much help. Word on the street says the unemployment offices are so overwhelmed that it could take weeks or months to even get in touch with somebody — even longer to collect your first unemployment check.

If you’ve been blessed with financial abundance during this time, and you know somebody who’s financially hurting, be willing to reach out and help them anyway you can. In times like these, it’s important to come together and be generous to those in need.