2006 Retail Sector; Is The Industry Taking on Water?

Retail sales were projected just before the first week of January 2006 to experience modest growth throughout 2006. Some analysts predicted as high as 4.7 to 5%, but now some are re-adjusting their figures. In 2005 we saw a 6.1% increase in the market. What is happening to put a negative or rather a not so positive light on the retail sector? Well a few things really. On is the slow down in the housing market due to interest rates.

Another big issue is the higher oil prices and their effect on shipping of products to market and the costs to consumers to fill up their automobiles. Supply and demand spikes are thought to be even higher than in 2005. This is due to International Terrorist threats to take out pipelines in Nigeria. The Iran nuclear weapons standoff and the potentially devastating repeat of the 2005 Atlantic Tropical Hurricane Season and Gulf of Mexico oil assets of production and refining.

Additionally we are looking at some pretty harsh US Automaker lay offs, which will decimate retail stores in nearby regions to factory closings. On top of that with the new credit card laws credit card companies are tightening the reign on consumer credit, credit card limits and raising both interest fees and minimum payments. All these things together cause some analysts alarm and some reconsidering their figures even to a negative number if things do not change. So consider this in 2006.

Lance Winslow - EzineArticles Expert Author

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