Biggest fall in sales at DJs on record
David Jones says a dramatic plunge in consumer confidence among well-heeled shoppers, exacerbated by carbon tax fears, has led to a record fall in sales.Hey dickhead, people have been using their spiralling home equity to splash out. Now they are losing $1000+ a week from the gabled roof Ponzi and the ATM in the garage is running out of cash. A primo example of how falling home values will infect business at EVERY level. Wait until the unpemployment is over 10%+ as the contagion spreads and the feedback loop gets stronger*.
Unemployment WILL rise (click on chart to expand)...
The company says it will consider more aggressive discounting, but believes the Australian retail industry is in uncharted territory.No shit. Its well charted in the USA, Ireland, Spain etc. You ain't seen nothing yet.
"We saw a decline in May with slight negative sales, but we saw a significant decline in June and July and the result were certainly unprecedented," chief executive Paul Zahra told a media teleconference on Thursday.There was no Carbon Tax in June but there was significant data showing house price declines.
"As far back as our records show, we haven't seen these sorts of declines in sales."
"I don't really know what we're entering into, but our future guidance fully factors in that negative sales environment."How many million does this dickhead get paid?
*Feedback Loop. Decline Home Equity (leads to)> Declining Consumer confidence/Spending>Rising Unemployment (Construction and Retail first hit)>Declining Home Equity (Rinse and Repeat). Now add panicking baby boomers "cashing out bfore its too late" and Small to Medium Enterprises (SMEs) that used home equity as collateral, getting credit lines slashed or loans called in.