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ICSC Chain Store Sales declined 1.0% in Sept 21 Wk
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The ICSC-GS sales index declined by 1.0% sequentially from the prior week, which extended its decline for a second consecutive week. Moreover, sales grew at a sluggish 1.6% pace compared with the same week of the prior year - which was its softest performance since matching its June 22 gain. The year-over-year weakness was across the board, according to the ICSC-GS channel-checking survey, with pronounced weakness in specialty, dollar, discount, grocery, drug, department, office and furniture stores.
Weather, generally, did not provide much support for seasonal demand. According to Weather Trends International (WTI), the U.S. average temperature was 0.7F cooler than last year, but 0.9F above normal. WTI observed that weather was quite "changeable" during the week "as fronts crossed the nation bringing a day or two of warmer weather, then a shot of much cooler weather." Overall, the northern half of the U.S. trended cooler and wetter than last year, which was a positive for seasonal categories such as long-sleeved shirts, light jackets and jeans. Meanwhile, temperatures trended the warmest in three years in the South, which will have delayed interest in Autumn categories.
Meanwhile, gasoline prices at the pump declined, easing pressure on consumers' discretionary-purchasing power. The U.S. average for regular-grade gasoline prices declined by 5.2 cents in the past week to $3.495 per gallon on September 23, according to the U.S. Energy Information Administration. On a year-over-year basis that nationwide benchmark for regular-grade gasoline declined by 8.7% from the same week of the prior year, which was its largest year-over-year decline since April 15 (-9.7%).
Posted: September 24, 2013 Tuesday 07:45 AM