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Retail spending points to shifts in credit markets

Mar 26, 2012 Walt Wojciechowski

Consumer sentiment continues to show signs of improvement, which bodes well for the credit market, as greater confidence means buyers are more willing to incur debt for their purchases. Retailers with a strong ecommerce portal have shown particular strength of late, reflecting the increasingly web-savvy nature of today's consumer. It also alludes to a desire for online comparison shopping to find ideal products and prices. These are the results of a report released this week by consulting service Great American Group. Moving into the spring, the outlook remains relatively positive, the report notes. But overall, consumer spending remains difficult to project. "While overall results have been mixed, there have been clear winners and losers in the retail sector," said David Triompo, director of consumer products at GAG. "Retailers on opposite ends of the spectrum have performed well, with luxury retailers capitalizing on increased spending by this customer demographic." Some firms have had trouble finding lenders to finance their growth, which may prolong the recovery period for some markets. For that reason, many officials and business leaders have been urging stronger government involvement in spurring both the business and consumer credit markets.