2009 Stimulus Check

Not all retailers will benefit from the 2009 stimulus check.

When the 2009 stimulus was signed, many retailers were hoping that they would be helped by the stimulus package. The idea behind the stimulus checks is to create a project where the country would produce as much as 3.5 million job opportunities while at the same time give consumers stimulus checks to spend and help boost the country’s economy. However, it looks like only some of these retailers will get any kind of financial support from the 2009 stimulus.

Gregory Melich, one of the analysts at Morgan Stanley, said that even though the 2009 stimulus checks would result in consumers spending as much as $200 each, it is possible that this will only result in retail sales worth between $30 billion and $50 billion. And the stimulus checks and tax credits are likely to be spent on retailers that are value-oriented or those who are selling products that are considered as necessities by the consumers.

In a recent article, Gregory Melich wrote that the overall impact of the 2009 stimulus checks will only help a few retailers in the country. In the same article, Gregory Melich said that analysts like him are expecting that the Obama stimulus will only stimulate retail sales by 1 percent. Hopefully, the retail sales industry would not have a 2 percent decline given the current financial crisis of the country, resulting with rising unemployment as well as the decreasing value real estate properties.

He described the 2009 stimulus checks as a form of reallocation rather than a way to boost the economy’s growth. Consumers like him are always in favor of the distributors or retailers offering their goods at a very cheap price especially when it comes to their essentials or the things that matter most to them. Some of the distributors that he considered will benefit from the stimulus checks and tax credits to the Americans include Korger, Wal-Mart, and Wendy’s. Gregory Melich also mentioned that the Advance Auto Parts as well as the Discounter Dollar Tree are also in the category of well-favored distributors in the country.