Retailers, consumers and prices
Check out the Whirlpool of woe.
Five thousand. That’s the number of jobs Whirlpool plans to cut by the end of next year as it faces falling sales in North America and a potential global recession.
Appliance makers have already been hammered by the U.S. housing collapse. Now the credit crunch is likely to keep demand down, the world’s largest appliance maker said.
“The global credit crisis has had a profound negative impact on what was already a weakening and very fragile global economy,” Whirlpool Chief Executive Jeff Fettig (pictured left) said in a statement.
Some of the job cuts had already been announced. Others were new. They all add to a slew of job cuts announced by corporate America in recent weeks.
That creates a spiral of people not being able to buy the goods the manufacturers make, which could cause manufacturers to cut more jobs as the economy keeps swirling down the drain.
Also in the basket:
Sam’s Club opening new store called Mas Club
Retailers slash Blu-ray player prices (WSJ)
Check out the bleak view of the global economy.
Expectations for the global economy have fallen to their lowest level in almost 18 years, according to the Ifo economic research institute, a Munich-based think tank.
Based on a survey of 1,025 economic experts in 92 countries, the expectations component of the group’s latest survey was 61.4 percent, the lowest reading since the final quarter of 1990.
The overall economic climate index also fell, hitting it lowest level in almost seven years.
The good news is that the the economic climate has not gotten worse in North America.
The bad news is that it has gotten worse in Western Europe and Asia, areas where U.S. based companies have done well while the U.S. economy sputtered.
Also in the basket:
BJ’s Wholesale profit up, raises full-year view
Nike launches new format (WWD, subscription required)
Nike brand head very pleased with Beijing effort
Wal-Mart shoppers favor McCain (WWD)