December 24, 2007 (LPAC)--On Christmas eve, the Wall Street Urinal ran an article, which went to contorted extremes, trying to prove that holiday shoppers would defy expectations, and "open their wallets wider" this year, and thus carry the country's economy through the "rough patch" it is experiencing. This desperation is necessitated by the fact that, in today's "post industrial" economy, consumer spending makes up a whopping 70% of the nation's the mis-named GDP, or Gross Domestic Product.

Defying this prevailing Wall Street "line," the New York Times ran an article the same day, highlighting the fact that even at Target, sales aren't living up to expectations. Target, the nations "high-end" discounter, was expected to "dominate" this season, as shoppers "traded down" from upscale merchandisers like Macy's and Nordstrom. But that hasn't happened. Target's sales are slipping, and the company's growth rate is now under 1.5% (rather less than inflation). Management has warned that they may not meet their earnings forecast this season. dissecting the sales patterns further, Target managers note that, while people are buying gifts, they are cutting back on refurbishing the essentials, like clothing and housewares. These high mark-up segments often get a "carry-on" boost of sales as shoppers go through the stores, but not this year.

Other media were pointing to lagging internet sales, and that retailers were resorting to "deep discounts" in order to lure customers. Bloomberg noted that the National Retail Federation said this year's holiday shopping may be "the slowest in five years."