Craig Johnson, President of Customer Growth Partners, says for the most part retail earnings are showing signs of a very weak consumer, a trend that shows no signs of letting up. Johnson says bright spots are Dollar Tree and Dollar General with 2% comp store sales, still anemic, but not bad in today’s economy. Johnson says the single biggest driver of retail sales – real income growth – has “basically flat-lined” several years. Johnson also discusses the evolution of strategy at Abercrombie & Fitch which is trying to win back teenage customers by toning down the nightclub vibe in stores and minimizing the chain’s signature logos. Johnson speaks with Bloomberg’s Kathleen Hays and Vonnie Quinn on Bloomberg Radio’s "The Hays Advantage."
American Apparel Inc. used to enthrall 16- to 25-year-olds with its neon bike shorts and lace- thong leotards. Now, it’s just trying to raise enough cash to keep creditors at bay for at least six more months.