Best Buy’s Earnings Are the Next Test for Discretionary Spending

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Best Buy’s Earnings Are the Next Test for Discretionary Spending
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While people are still wary of spending on big-ticket items, consumer demand picked up in the summer months, analysts say.

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Best Buy’s earnings, due Tuesday morning, will show whether consumers are still hesitant to splurge on a new flatscreen TV— or if demand for consumer electronics may be poised for a comeback.

Sales at electronics and appliance stores were 3.1% lower in July than a year ago, according to the Census Bureau’s latest report on retail sales. Electronic sales were also lower than in June, the report found. Back-to-school season may also be driving more people to look for electronics. While foot traffic to Best Buy was down 10.7% from a year earlier in the last week of May, according to Placer.ai, it was off just 2.4% in the first week of July.

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