Shoppers' Confidence Hits Low

The consumer confidence index hit its lowest level since 1980, falling to 54.9 in early August from 63.7 in July, according to Thomson Reuters-University of Michigan Surveys of Consumers.

Sales at department stores in July fell 0.8 percent to $15.4 billion, while sales at general merchandise stores, were flat at $52.5 billion, according to Women’s Wear Daily.

Department stores are struggling because of high unemployment, volatile gas prices and a general nervousness about whether the economy is heading toward a recession, which affects their target customers, says Kevin Regan, senior managing director at Baltimore-based FTI Consulting, in a WWD article.

But a weaker dollar is helping high-end retailers. “Tourism is having a high impact on the luxury side,” Regan says. “With a weak dollar, you can come in here and you can spend.”