Jim Woods

Holidays Won't Revive Consumers

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This is the lowest November reading for the home entertainment store that we've ever seen. The electronics giant faces a double whammy: Not only is this the weakest consumer electronics season in years, but among those who are buying, large numbers are fleeing Best Buy for the discount retailers.

As the following chart shows, discounters Wal-Mart (WMT), up five points to18%, Sam's Club, up three points to 12%, and Costco (COST), up three points to 27%, are rapidly picking up share in the home entertainment and computer/networking market.

Tiny Uptick in Consumer Sentiment

The survey also asked respondents about their current impressions of the economy, and while consumer sentiment still looks awful, some of these indicators don't appear to be quite as dire as they were in September.

Fifteen percent of respondents said they think the overall direction of the U.S. economy is going to improve during the next 90 days -- three points better than a month ago. And while a huge 57% said they believe the overall direction of the U.S. economy will worsen, that number is nine points better than previously.