1. The persistent creation of low-end service jobs has flatted disposal income, which is causing consumers to be highly selective on purchases. Gasoline prices and increased payroll taxes are taking a larger share of income from consumers. As a result, discretionary items are becoming an afterthought. 2. Consumers are putting more emphasis on housing and auto. 3. Inventory levels will continue to experience high markdown rates. 4. The shift to housing should benefit home retailers such as The Home Depot, Inc.(NYSE:HD), Lowe's Companies, Inc.(NYSE:LOW), Lumber Liquidators Holdings Inc.(NYSE:LL), and etc...