So it's up to the retailers and manufacturers to come up with new doodads and fads that will make us want to spend our money. On the apparel side, sweaters and leather pants now featured in specialty chains and department stores may be nice enough, but they're not likely to inspire a buying frenzy. But it's not just that consumers are bored. They may also be a little nervous. The Fed has raised interest rates.
Energy prices are up.
Consumer confidence fell in October to its lowest level in a year. Moreover, with a lot of goods on the shelves, and a glut of stores at the mall, retailers are likely to fight hard for every dollar. That means discounting, which in turn means earnings trouble. That's what happened to Gap, which had to discount heavily to clear unpopular fall merchandise from its stores. There's trouble on the cost side, too.