Research >> Economics
ICSC Chain Store Sales decline by 1.5% in Jan 26 Wk
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Sales weakened in the latest week as a confluence of factors held back the reported selling pace. The ICSC‐Goldman Sachs (ICSC‐GS) chain store sales index for the week ending January 26, 2013 dropped by 1.0% from the prior week and on a year‐over‐year pace s lowed to 2.0%. The nationwide average temperature was sharply colder than last year—which may have helped drive clearance of seasonal apparel—but it also seemingly held back the consumers’ spending pace in most segments. The ICSC‐GS consumer tracking survey found business down versus the same week of the prior year for drug, department, apparel, discounters, dollar, wholesale clubs, specialty stores, electronics and furniture stores. Add onto that higher fuel prices for the week, the backdrop of higher payroll taxes in January and little incentive to shop during this seasonally‐slow period, consumers spent less both sequentially and on a year‐over‐year basis.
According to Weather Trends, Inc. (WTI) the U.S. average nationwide temperature was a hefty 8.7°F colder than same week of last year and a modest 0.9°F colder than normal. WTI observed that, "Frigid Arctic air swept in behind a cold front across the eastern half of the nation as overnight lows fell to [more than] 30°F below zero in some areas. It was the coldest fourth week of January since 2005 and the fourth coldest in over 22 years for the Northeast. The North Central States were the second coldest in over 22 years as well."
Meanwhile, gasoline prices rose slightly in the latest week ending January 28 versus the prior week. According the U.S. Energy Information Administration, the average price of a gallon of regular grade gasoline was $3.357 on January 28‐‐which was 4.2 cents higher than its prior week’s reading and the highest since December 3 ($3.394).
Posted: January 29, 2013 Tuesday 07:45 AM