Retailers seriously worried about back to school sales... already

Spending is something Americans have always been good at, but these days, more and more folks are opting out for saving.

"As long as people have jobs they will buy but when the money stops coming in, it's a different game," Carlson School of Management professor Dr. George John said.

Retail sales took another dip last month. Locally based Target's same store sales declined 6.2 percent. Overall retail spending was even worse.

"If you think about Target think about what they have done, they created an aura of cheap sheik so in a little way they were caught by their own success," John said.

We found a couple of Target shoppers today, who were spending, but spending less often at the bull's eye retailer, than ever before. Michelle Lau took her son on a Target trip to stock his new apartment but even she was wary of her purchases in this economic climate.

"I think attitudes will probably improve, we will get used to it but it's been an education for all of us on getting by and buying smarter," Lau said.

Dr. John thinks essential retail stores like Target and Walmart will survive, on a little less, but mall stores that offer what we can refuse have a tougher row to hoe. "When the downturns come you see a lot of places going under. Go to Ridgedale, Southdale and you will see empty storefronts," John said.

The key now is to lure the shopper because back to school season is here and it is huge for retailers. So they will have to up their game, to stay in it.

"In the short run they have to find ways to create excitement, maybe new products," John said.

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