Even so, Best Buy is expected to surf the steady demand for digital products, and consumer caution augurs well for discounters like Target, the other Twin Cities-based retail giant. Many traditional retailers probably welcome one change from last year. Despite the slowing economy, stores are struggling to hire and keep enough employees. Employees will start working for a particular store, buy using the store discount they have as employees, buy the stuff that they want, and then when they're done with everything they want in that store, they go down to the next store and use the discount in that store. The many other challenges are not prompting predictions of a sea of red ink.
Analysts say retailers have adjusted their inventories and cost structures to protect profit levels.
But it's an environment that favors strong retailers at the expense of weaker firms.