" This is the Money Markets & More for Wednesday may twentieth. From the newsroom of the MarketWatch radio network I'm Tracy Johnke. Coming up that the recession is good or airlines in one respect passengers are happier. I'll tell you why a tale of two retailers spoiler alert the discount -- winds."

" And I'm John ward uncle also coming up in a few minutes we are gonna talk about how retailers -- to consumers these days consumers have gotten extra frugal and retailers have to do something about it and that's our consumer race and Kate's shall join us in a moment."

" And ABC hopes still tune in this fall for a two business themed shows Kelsey Grammer stars know bar in sight. Those stories coming up but first this."

" Now -- that you marketwatch.com. Instant access to the advice he. He can manage your portfolio and make smart decisions about your money than you marketwatch.com. It's fast accurate comprehensive -- that you marketwatch.com today -- get. Head of now."

" On -- day in business history day US patent office approved an application. For blue jeans with copper -- in 1973. Was submitted by. None other -- Levi Strauss and some other guy. He didn't give his name on the -- that doesn't merit a mention here. And in 1971 those newfangled moving pictures made their debut at that first public display. Of Thomas Edison's connect the scope. On the -- of the Federal Reserve releases the minutes of its April meeting that you can't wait. The Energy Department looks at oil and gasoline supplies and a host of retailers have earnings news including target BJ's wholesale hot topic and PetSmart. Something for the entire family. The owner of the TJ max and marshalls discount chain says its -- significant increase in customers coming into your own stores. In the last month and they weren't as it a look around TJX reported a higher quarterly profit on higher sales. Meanwhile home Depot's sales keep shrinking but it did manage to keep its profit growing in the latest quarter sales. Have suffered as people cut back on germanic and expensive projects like kitchen read news. But smaller purchases such as garden supplies are holding steady. It's time now to bring in John -- advocates and there are going to talk about this -- consumer behavior and stores are responding to John."

" Many of us are looking to pinch pennies these days and -- try to get as much add of the old dollar bill as possible and guess what retailers are picking up on this. Let's bring in our consumer race and -- he joins us to talk more about this consumer trend. So bring us up to load speed here consumer base."

" Well retailers had a very rough holiday shopping season they were forced to slash prices dramatically now of course that -- into their profit margins that -- Some retailers went away because of that like Circuit City there is big layoffs and now. Retailers are just basically trying to just rethink how they do the whole thing so what summer doing. Including American Eagle Outfitters and pottery barn they're redesigning their product whether bigger khakis of the furniture. Not making them quite so fancy paring back the production costs and therefore they can sell and their products at a lower price. Starbucks recently chop the price for its iced coffee either they'll have to do this because consumers are not spending and at this point they are not willing. To pay anything for anything unless they perceive it as of being a good deal."

" No because more and more people are losing their jobs so why would you pay for something that's gonna cost you a lot of money if you feel that you're not going to be able -- Pay off your credit card bill -- you know do whatever in in the next few weeks right."

" So that's what that's why these retailers to set to completely redo the way they're doing business because of that they've they've got to just offer products that consumers are willing to buy. And they also not -- retailers also need to make money so that's why they're they're cutting their own costs as well."

" Now of course all this hurts the bottom line. Because you're never going to be able to boost sales enough to offset."

" The price reductions now -- everywhere consumers are willing to buy these it mentions anymore they're scaling back. And that way they want smaller houses aren't necessarily -- the big fancy. Suvs or things like that so even retailers on the smallest scale. Once selling cups of coffee that they've got to do it this way to do so if you're not on the make mansion you're not getting that fifth toilet. More of that of fourteen big screen TV in the denied its its its effect is it's all around consumer spending -- for a long time savings rate is way up. And consumers have just become very fruitless all the lines that most analysts think it's a trend and that's that's going to stick around for awhile in other words they're becoming like me gather becoming John ward -- you -- John -- and mr. tightwad."

" Trying to squeeze blood out of each and every penny each and every day yes -- dock and -- like it is and -- our consumer race thank you thank you."

" Thanks John and and their recession. Has produced one unintended benefits for airlines. Happier passengers. Fewer people are flying so airlines are doing a better job keeping track of their bags the airlines have cut flights and routes of the on time rates are better and the lines are shorter at the ticket counter because fewer people are taking to the air. This adds up to the first increase in passenger satisfaction and since 2003. According to the University of Michigan. That survey found southwest with the highest score and the most improved -- continental and US Airways. And ABC hopes were ready to laugh at the tail of a high level executive who gets canned. The network has unveiled its fall line up and -- of its new shows have business themes. Hank stars Kelsey Grammer and he's back -- former CEO. The other offering as a reality show called shark tank on -- compete to impress millionaires you are. Going to bankroll the winning projects. Does look like anyone will be put into a tank with sharks balance are disappointed there. Though that might seem like a walk in the park compared to use trying to actually survive in the business world. And that is it more Money Markets & More area if you want to hear more from unser. Anyone else in our podcasting. Man. Let's say let's not farm podcasting farm market marketwatch.com. Slash podcast Ross on iTunes -- can ask. Check -- on FaceBook MarketWatch radio network we are twit hearing. On Twitter as and W radio and you can always rightists we love to hear from new. At MarketWatch radio newsroom at Yahoo.com. I'm Tracy -- thanks for listening."