An economic lift after the vote?
Relief that the election is over could put some consumers in more of a spending mood.
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"We are moving from historically low unemployment to troublesome levels," Mr. Naroff says. "The reality is that businesses must protect themselves at this point because they don't know how steep and long the downturn will be."Skip to next paragraph
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"Everyone knows someone who has been laid off. It is the dark cloud hanging over us," he says. "We have seen it with our retail clients, where we are seeing people trading down," he says. "If they go a restaurant, they are ordering hamburger instead of steak."
Indeed, the readings for consumer confidence are at historical lows. And elections have had only a marginal effect on confidence, says Lynn Franco, director of the Conference Board's Consumer Research Center in New York. "Whatever the trend was, it stays in place," she says.
Ms. Franco is hoping for some noticeable improvement in consumer expectations for the future. "When confidence is this low, consumers are less willing to spend," she says.
A short-term distraction
Historically, elections have been a short-term distraction. "This week has probably been like a ghost town in some retail stores," says Bill Martin, co-founder of Chicago-based ShopperTrak, which provides information for retailers. "The fact the election is over means there will be fewer ads from the candidates on television and more promotions for merchandise. And so we might see some shoppers return to stores to some extent."
In the next week or two, Mr. Martin would not be surprised to see some improvement in the retail climate as part of an emotional reaction to the election. "There is a lot of money on the sidelines, and maybe it will loosen up," he says. "If it can carry over into the holidays, and we can get the banks to lend some money, the holiday season may not be disastrous but maybe will be flat to up a little bit."
Some retailers hope to capitalize on any change in consumer sentiment.
On Wednesday morning, Lunaboston.com, a website that sells women's handbags and accessories, sent out a sale notice to some of its customers. "Obama's followers were very passionate, and we wanted to ride that wave a little bit," says Sarah Johnson, CEO of the Boston company.
Some high-end stores are also more optimistic, particularly since the stock market has come back somewhat. One of those is the Astro Gallery of Gems in New York.
"Things will settle down and be much more active," says Dennis Tanjeloff, the company's president. "We are expecting sales to go up 2 to 3 percent over last year."