Tuesday, June 19, 2012

The Problem With Henry May Derail U.S. Recovery

Mac McKay entered this year ready to spend after sales at his flower shop in Arlington, Virginia, rebounded. He planned to take his first vacation since the recession and start a $30,000 kitchen renovation. Those plans are dead.

 “We’ve cut back on a lot of things we used to do,” said McKay, 62, who watched revenue at Garden City Florist sink 15 percent this year. “You can see people tightening. They were more free with their money last year.”

McKay is what retail consultants call a Henry: High Earner Not Rich Yet. This cohort has helped a gamut of retailers from Target Corp. (TGT) to Saks Inc. (SKS) get through a spotty U.S. recovery. Now, as the global economy slows, the European debt crisis grows and U.S. unemployment ticks up, Henrys are tapping the brakes after just becoming comfortable spending again, said Pam Danziger, the president of Unity Marketing....

Don't stop now.  Get the whole story at The Problem With Henry May Derail U.S. Recoveryhttp://www.bloomberg.com/news/2012-06-18/the-problem-with-henry-may-derail-u-s-recovery.html

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