Retailers on the Ropes

http://www.time.com/time/business/article/0,8599,1874532,00.html

This article is about how businesses are going under because of the economy. I actually found this article when I was reading a different article talking about how even though the economy is doing bad, Wal-Mart sales are doing better than ever. That caught my attention because it makes sense that the place with lower grocery prices would be doing better. When I saw this article though I kind of felt bad but also understand why those specific companies are not doing so hot. More and more people can only afford to spend their money at Wal-Mart or Sam’s Club to buy necessary items like food making companies that sell ‘extra’ things strive for business and are forced to go under. It’s basically like we have to make the choice between food and buying a new lamp from Pier 1 Imports, one of the failing companies mentioned in the article. I think that we would all chose the food and by the looks of things most people are spending what they can on necessities. This decrease in spending is hurting companies that sell electronics, clothes, and toys. There isn’t a demand for these types of businesses anymore forcing them to go bankrupt. I know I’m careful how I spend my money and with the price of everything so high even when I do only buy food or necessities I’m not left with very much money and that normally always goes to putting gas in my car! I feel bad for all the jobs lost from the failing companies but it’s hard to afford extra things even if I wanted too.

I can totally see why this could be happening to many stores in the area. Most people do not have the money to spend on all kinds of extras like tvs, dvd players, lamps, furniture, and many other things. Most people use any extra money that they have on food and that's it. That could explain why circuit city a store a lot like best buy, that sells tvs, and other electronics would go backrupt. People can't afford to spend these high prices on items that they don't need to have. So it's easy for these stores to go bankrupt if the money that used to be spent there is no longer being spent there. But on things that people really NEED. This scares alot of people because they are afraid of what is going to happen if the economy keeps dropping at the rate that it is now. Many people will lose there jobs when places go bankrupt, and they will become unemployed and need to find jobs elsewhere. Our economy needs to take a step in the right direction, or many more retailors will go under and more people will suffer.