Best Buy reported a steep drop in earnings but still beat analysts estimates. What was more important though was the company’s announcement that it was going to be buying out employees and reducing new store openings.

It’s statement spoke volumes about the economy:

“We anticipate that companies will be laying off more employees, which will exacerbate the decline in consumer confidence, uncertainty and weakening demand,” Best Buy Chief Executive Brad Anderson said during a conference call.

“In fact, we can foresee a period in which consumers may significantly shift their spending behaviors, which could have a dramatic impact on retailing,” Anderson added.

That last sentence is quite important. Coming from arguably one of the better retailers in the country, the suggestion that the consumer may be on holiday for a protracted period of time suggests that any recovery may be weak indeed.

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