If we still believe that consumerism will get us out of the current recession,it may be worth looking at yesterday's results from Argos.
It's owner Home Retail Group reported reported plummeting profits and threatened to cut its dividend as a result of performance at both Argos and Homebase.
The group reported a 70 per cent drop in interim pre-tax profits to £28.3 million, Operating profits at Argos fell by 93.7 per cent to £3.4 million.
Sales of consumer electricals fell 20 per cent and the retailer says it has been hit hard during the downturn as its mostly lower-income shoppers are forced to spend more on food and fuel.
It looks as if the group is going to be forced into a store closing strategy as the group says it has not seen the improvement in sales that it had anticipated.