The company told analysts that the cities lacked enough middle-income consumers to make the centers profitable.

Tightening of credit availability to middle-income consumers may also have been a factor for jewelers and other retailers, he said.

Instead of spending that money, low-and middle-income consumers appear to be sticking to their budgets.

The clientele were lower- to middle-income consumers.

"Clearly, the middle-income consumer is feeling the heat and is only inclined to respond to greater discounts," he said.

Performance at chain drugstores reflects the attitudes of lower- and middle-income consumers, he explained; they are typically the first to cut their spending.

Analysts said the deal could help prod New York's consumer banks to provide better service and lower automated-teller rates for middle-income consumers.

The company profited greatly during Mexico's recent recession by focusing on lower- and middle-income consumers, which account for 92 percent of the country.

The decision had the effect of giving middle-income consumers the same protection in bankruptcy that higher-earning workers receive for their 401(k) plans and company pensions.

He claimed that it would hurt low and middle-income consumers and was unfair to Wal-Mart and other businesses.