Good deals on the way as retail slows down

CLARKONOMICS: Mid-priced and high-end retailers have been reporting terrible January sales figures. This trend was not expected when you consider that sales of gift cards were slightly up during the holidays. The only retailers who made out OK were the deep discounters and warehouse clubs. Macy's has just announced they're going to be cutting more than 2,000 jobs amid their January sales decline of 7 percent. When you factor in inflation, the mega-retailer has fallen off a cliff. Part of the problem has been the company's corporate arrogance. They decided all their goods had to be self-branded and got rid of their beloved Marshall Field's imprint (and a lot of warm, fuzzy customer goodwill in the process).

This downward trend in retail means there are going to be deals in the mass affluent market (Coach, Tiffany, etc.) and at mid-priced clothing retailers. One area where you won't find bargains is in the world of flat-screen TVs. There's just too much demand still. Prices in some cases are higher than they were in October. Meanwhile, the Wii still is in short supply. The Wii is allowing nursing homes to have far more activities than they could previously, thanks to its virtual simulation of physical activities.