Good News From The Retail Sector

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Good News From The Retail Sector


May 10, 2009 by Mark Maier

In the media we have been dubbed as the purveyors of bad news so it is nice to be able to pass along good news today from the retail sector from the article "April Sales Get Boost From Late Easter"...

"Goosed by a later Easter holiday, major retailers are reporting generally more upbeat sales results for April, but economists say it's a little too soon to start crowing about good news.

"One very good sign is that a number of stores, including Wal-Mart, are noting an increase in store traffic -- people are shopping again," says Frank Badillo, senior economist for Retail Forward, a Columbus, Ohio-based consulting company that tracks the monthly sales results of about 35 leading chains. "But whether this is pent-up demand, and they're just buying to replace things, or increased spending, it's hard to say."

Overall, the Retail Forward index gained 0.9% for about 35 retailers reporting monthly results. Some crosscurrents make it especially hard to read broader trends, he adds. While this year's April results are benefiting from the later Easter, they are also being compared to last year's April, when some stores felt a jump from the first round of economic-stimulus checks.

And while new stimulus money is flowing into workers' paychecks in terms of tax cuts, Retail Forward's survey finds that 32% of consumers say the amount is too small for them to notice a difference. "Still," he adds, "some shoppers may be factoring that extra money into purchase decisions."

I like to share articles like this with my clients and get their take on what is happening at the cash register, it is a great way to open up the conversation about how to drive more business through the door.

 


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