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Americans buying cars, but not consumables
When Walmart lowered its full year sales forecast last month the company said customer were being cautious with their spending. Maybe so, but that wasn’t the case in new car showrooms were automakers reported record sales and in the process created new holiday headwind for Walmart and other retailers.
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Record auto sales are holiday red flag
Retailers were already leery about the outlook for consumer spending this holiday season and reports Wednesday of record auto sales in August only add to the concern.
Both Walmart and Target reported disappointing second quarter sales and tempered their outlook for the full year. Conversely, car salespeople across the country were clinking champagne glasses and cashing commission checks as their employers, everyone from Mazda to Honda to Porsche and Ford, said August was a record month.