While neither have stores in Europe nor source much product from the region, Home Depot and Lowe's are at least two retailers somewhat concerned about how the current economic crisis in Europe may impact the U.S. consumer's psyche and possibly derail the retail recovery.
On the one hand, more events such as the May 6 stock market plunge - when the Dow Jones Industrial Average briefly plunged nearly 1,000 points - could possibly reverse the recent uptick in U.S. consumer confidence.
"When the consumer sees those types of things happen and they don't understand why, I think it does raise some concern in their minds," said Lowe's chairman and chief executive Robert Niblock in an interview last week with The Wall Street Journal.
Also, concerns that a financial crisis may reoccur in the U.S. akin to Europe's could "cause consumers to take pause," he said. Nonetheless, he added, "Assuming we don't have something like that take place, we feel good about the year."
Home Depot chief financial officer Carol Tome said Home Depot's concerns also revolve around Europe unsettling U.S. financial markets.
"If the (European) situation would cause more financial turmoil here in the U.S., and if that would impact consumers' ability to get credit or just the overall sentiment on the economy, it could be bad," she told the Journal in a separate interview.
But it's too early to say there's likely to be any effect, she added. "We think it's had no effect" so far, Ms. Tome said.
Discussion Question: What effect, if any, do you think Europe's debt crisis will have on U.S. retail?