The Department of Commerce reported that retailers are experiencing a slightly growth of 0.4% in July and 5.9% growth in the previous month. Excluding the auto and auto parts, retails gained 0.2% but 4.9 percent in the previous year.
Due to the fact that taxes keep on rising, retails find themselves in the impossibility of promoting their sales. Most of them are mainly concerned on maintenance rather than economical growth. The clothing departments also had a lot to loose from the economical crisis and the accessories are not looking better by dropping with 0.7% on sales. The building materials and furniture sales are down by 0.3% and the retailers are concerned of new taxes can drop sales even lower. Because of the decreasing sales, 14.6 million Americans are now unemployed and ware once a part of the retail service. Retails that ware once leaders on this market are being forced to the point where they can go bankrupted if the government does not drop down tax. And even so, they manage to keep up. Once the taxes get higher, these are going to be a lot of unemployers in this sector again. The taxes must not vise directly retails, but they can overcome the economical possibility of people to by specific things. This can lead into a drop sale process and bring few and few money to the company’s budget. Because of this, in order to survive the company has to fire people once more, thus increasing the unemployment rate by a few thousand more.
Not only this, but the people are no longer looking for the top retails simply because they can’t afford it any more. This is why; some of the leaders are the ones that got the bigger sales drops while other smaller retailers managed to sustain themselves.