Bleak News from the Low End

The news that retail sales plunged during March came as a surprise to most economists. But listen to the messages coming from some retailers and restaurants on the low end of the price scale, and it should have been no surprise that consumers are still keeping spending to a minimum.

Mike Duke, who became CEO of Wal-Mart earlier this year, gave Matt Lauer a dim prognosis on the state of the economy on the Today Show this morning. Based on the retail giant's observations of its customers' spending habits, few people are experiencing the "glimmer of hope" that some economists believe is emerging.

Duke said consumers are still feeling a lot of stress and he doesn't expect the economy to rebound soon. "It's not a 'V' recession, where we're just going to bounce out and come back," he said.

News from Burger King today only compounded the dismal outlook. While fast food restaurants had been benefiting from the economic slowdown, Burger King surprised analysts by posting lower than expected revenues for the first quarter.

The restaurant chain experienced an "unanticipated traffic slowdown" in its stores during March. Burger Kings in Mexico and Germany were hit hardest, and the company is pushing more value meals in those countries to stem the decline.

The company said April sales have improved, citing the calendar shift of the Easter holiday to this month. It's not clear exactly why that holiday might be a boost to Burger King, unless it's that some huge number of practicing Protestants give up french fries for Lent.

by Megan Barnett