Research >> Economics
ICSC Chain Store Sales declined by 0.8% in May 5 Wk
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The International Council of Shopping Centers (ICSC) reported that chain store sales fell 0.8% from the prior week, while increasing 3.3% over the prior-year period during the week ending May 5th. The fiscal month of May started on a soft note as there were few catalysts for spending in the past week. As a result , the ICSC‐GS consumer tracking survey found that consumers shifted their spending towards more staples (grocery, in particular) and less discretionary spending. This compositional shift contributed to the softer performance for the week. But with Mother’s Day fast approaching, this shopping pattern is likely to swing back to more discretionary spending in the current week.
Weather was warm for the nation, but that did not seem to matter much for sales. According to Weather Trends International (WTI), the national average temperature over the past week ending Saturday was 6.5°F warmer than last year, but 5.5°F warmer than its long‐term average. Meanwhile, fuel prices had their fifth straight weekly pullback. The US Energy Information Administration said gas prices fell another 4 cents compared with the prior week to $3.79 on May 7th and, cumulatively, by 15 cents over the past five weeks. Compared with the same week of the prior year, the price of regular‐grade gasoline fell by 4.4% in the latest week, which was its largest decline since the week ending October 19, 2009. For all of May, ICSC Research forecasts a comparable‐store sales gain of about 3% (including drug stores, which will be reported later due to the calendar). Excluding drug stores, sales are expected to increase by around 5%.
Posted: May 8, 2012 Tuesday 07:45 AM