Back to school shopping doesn't make grade

Back-to-school shopping may not make the grade this fall. Sales reports from July show a trend of consumers buying necessities only.

Don't expect a change anytime soon.

According to the New York Times' report, the benefits of the government stimulus check are fading away. Retailers' July sales reports showed a trend of consumers buying necessities and staying away from clothing and accessories. Money is being spent at lower priced alternative and discount stores such as Walmart and Costco Wholesale Corporation.

Ken Perkins, president of research at Retail Metrics states, "Consumers are in a fair amount of pain." This may be true, due to rising food and gas prices, and an economy in the slumps. Apparel stores such as Limited Brands, Abercrombie and Fitch, and Pacific Sunwear of California are not doing well.

Tighter credit, a troubled housing economy and a weakening job market have lowered the consumers' outlook for the economy to the lowest it has been in many years. Projections show that sales will slow in August and into the fall.