I'd rephrase it to "Not looking good for Wii U". Console races are marathons. The Wii U could turn around.
Right now the console is on life support. They needed Pikmin out last year. They needed Rayman to stay exclusive. Mario Kart needed to be this year and not next. SSB needed to be early 2014 instead of what will probably be late 2014.
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The console isn't on life support... Not sure if you ever own a new console before, but they all suffer from a lack of sales and games at the beginning. If sales stay down 2 years from now then you could say there is need for massive concern.
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Not like this. No, no, no. Retailers are dropping the console. That's not normal. Massive concern is an understatement. With Microsoft and Sony about to release their consoles Nintendo is at the highest DEFCON level.
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What retailers? The only one I've heard of is a UK retailer that is only selling the console online...