Q2 Results at the big box stores

Home Depot and Lowes reported their Q2 results. They were not good. Both seem to be struggling with the huge pull-back in large ticket homeowner renovations. I read one press release (I believe from HD) that they do not expect this business to come back until mid 2010.

I have also heard from tool buyers at other retailers that power tool sales are off. This is from buyers all over North America.

I wonder how the Christmas season will be? It certainly is not promising.

Cash for Clunkers?

Well, it didn't take long for this idea to go off the rails. Will President Obama summon up the votes in the Senate to keep it going? I guess we will have to wait and see.

The program did teach us a few things.

#1 There is a lot of pent up demand for vehicles out there
#2 Tax credits/cuts work and stimulate
#3 The government cannot run anything.

I am not thrilled that the cars are being scrapped and are not allowed to be resold and/or cut up for parts, since the aftermarket is vital to the industry. However, it is nice to see the dealerships busy again.