RETAILERS' FORECAST OR '03 GLOOMY.Byline: Brent Brent, outer borough (1991 pop. 226,100) of Greater London, SE England. The area is a rail and industrial center. Its manufactures include automobile parts, clocks and watches, and electrical equipment. Hopkins Staff Writer After a disappointing year, retailers shouldn't expect vast improvement any time soon, Ernst & Young projected Thursday in its 2003 forecast. Fears of war and a generally rocky economy will have consumers watching their wallets with care, leading the professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. firm to forecast sales will increase only 2 percent to 4 percent next year. Though Aubie Goldenberg, a partner with the retail and consumer products group, sees some relief toward the end of the year, stores will need to fight hard to keep shoppers in the checkout line. ``No one believes the U.S. economy will be strong through 2003,'' Goldenberg said. ``People are hoping for a hockey stick effect, where there's strong growth later on. With all the uncertainty in the geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. situation, people are skeptical about how strong the recovery will be, and that's tempered the sales growth.'' As a benefit for consumers, the study sees modest price deflation deflation: see inflation. deflation Contraction in the volume of available money or credit that results in a general decline in prices. A less extreme condition is known as disinflation. as a result of better international trade and increased productivity. Discounters will continue to benefit, though Goldenberg said that high end retailers could enjoy a bump toward the end of the year if the recovery unfolds in the fourth quarter. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , however, the landscape could be quickly altered. Though no specific companies were named, the study said retailers would begin closing unprofitable locations in an attempt to save the bottom line. Smaller chains who can't may fold in the face of increased price pressure from national players like Wal-Mart. The National Retail Federation, a Washington, D.C.-based trade group, projects a 3.4 percent sales increase, barring unforeseen circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or such as war or additional terrorist attacks. Spokeswoman Ellen Tolley said that large events in that vein can knock off large purchases, further constricting con·strict v. con·strict·ed, con·strict·ing, con·stricts v.tr. 1. To make smaller or narrower by binding or squeezing. 2. To squeeze or compress. 3. the economy. ``I don't think people will keep themselves from buying necessary things,'' Tolley said. ``But if national security is up in the air, they'll watch their budget very carefully. Instead of the $75 shirt, they get the $20 shirt. Retailers understand that.'' |
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