Jay Honeck wrote:
Could be a trend too. I think I heard on CNN a week or so ago, that WalMart
reported the largest single month sales decline in 20 years or so.

Our business is level which, considering the addition of three major,
government-funded hotels in our market, we consider a "victory".

Of course, this comes after four years of double-digit growth, so
suddenly going flat "feels" like losing...

I think gas prices are really, really hurting the "common man". I've
got housekeepers and desk staff who have seen a HUGE increase in their
driving expense, with no compensating increase in wages. This
shortfall has to be made up somewhere -- so I suspect we're seeing Wal-
Mart (and other stores) get hit by the back wash.

IMHO, the big-box restaurant chains ("Applebees" and such) will get
hit the worst in an economic downturn. That's where a lot of
discretionary American income gets ****ed away nowadays, and it'll be
the first thing eliminated.


Yes, but many low income folks that I know (and I live in a low income
area) spend more each week on cigarettes, beer and lottery tickets than
on the increase in gasoline.

I drive 40 miles to work and back each day for roughly 200 miles per
week not counting trips out to lunch. I drive either my Sonata (29 MPG)
or my Chevy truck (17 MPG), but let's use the truck as the worst case.
The truck burns say 12 gallons/week for my commute. When gas was
$2/gallon this was $24/week. Now at $3.14 I pay $38/week. I'm not
saying that the extra $14/week goes unnoticed, but I know people who
spend far more than that each week on cigarettes alone, not counting
beer and lottery tickets. So, there are many places that can be cut
back, but most folks will give up cigarettes last, beer next to last and
lottery tickets right before the beer! :-)

And if I drive the Sonata (which I do when my daughter doesn't need our
other vehicle), the difference is only about $8/week. Hardly enough to
dramatically change my buying habits. And folks that live closer to
work have commensurately less of a change.


Matt