Research >> Economics
ICSC Chain Store Sales decreased 0.7% in Oct 12 Wk
|
According to a special report conducted by the International Council of Shopping Centers (ICSC) and Goldman Sachs. While lower-income households, or those earning less than $50,000 annually, were more affected by the shutdown than those earning above $50,000, overall, two out of five consumers reported having scaled back spending.
Forty-seven percent of consumers with annual income of $35,000 or less were more likely to be scaling back spending, compared with 32 percent of those with incomes of $100,000 or more. Of those who have reduced spending, the majority said that the amount was “a little,” while the remainder indicate the degree of reduction was “considerable.”
Michael P. Niemira, ICSC's vice president of research, said, “As congressional leaders optimistically predict a budget deal may soon be reached, it is clear that the fallout of the past two-week impasse in Congress has affected consumers’ willingness and maybe their ability to spend. Hopefully, if the end of the government shutdown truly is in sight, this is likely to restore consumer confidence quickly and well ahead of the holiday season.”
Meanwhile, U.S. chain-store sales rose 1 percent year on year for the week that ended on October 12, according to ICSC and Goldman Sachs. However, weekly comparable-store sales contracted 0.7 percent.
“Sales weakened across the board by store segment—partially a result of the drag from the government shutdown,” Niemira said, adding it is difficult to predict how quickly and strongly consumer spending will respond when the deadlock ends.
Posted: October 16, 2013 Wednesday 07:45 AM