The Daily Interview: The Outlook for Retailers

As the earnings season for the nation's retailers winds down, the picture that emerges is one of an industry grappling with its most difficult period in recent years. Consumer spending has slowed considerably, and bankruptcies, store closings and an exodus of executives have pockmarked the sector.

Kurt Barnard President Barnard's Retail Consulting Group

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Yet, retail stocks have performed relatively well amid a time of bearishness on Wall Street, mainly on hopes that falling interest rates will be a boon for the sector. The Federal Reserve began slashing rates on Jan. 3, and since then the S&P Retail Index has declined but done considerably better than the broader market, as measured by the S&P 500. But with rates expected to come down further, retailers could start to post gains, as historical data shows the sector is one of the best performers six months after a cycle of Fed cuts begins. ...