NEW YORK — As consumers get ready to celebrate July Fourth, many merchants already have dismissed summer as a flop.
Macy’s flagship store has racks of summer tops, swimwear and dresses marked down as much as 50 percent. Luxury retailer Bergdorf Goodman is slashing prices on designer goods by as much as 70 percent. Meanwhile, piles of clothing, barbecue grills, tents and gardening tools are bypassing stores and heading straight to liquidators as merchants conserve cash.
Such deep discounting so early in the season is great news for bargain-hunters, but it’s a worrisome sign that shows a further weakening in retail sales since May.
Consumers’ confidence in the economy, which had surged in April and May, is projected to be virtually unchanged for June when the Conference Board releases figures today. And major retailers will release June sales results next week.
While unusually rainy weather across much of the country has dampened business, some analysts wonder whether shoppers are waking up to the harsh reality that the economy won’t be getting any better soon — even as consumer spending makes up 70 percent of economic activity.
That doesn’t bode well for merchants, which need to get rid of summer inventory to make room for fall goods to arrive next month.
