Research >> Economics
ICSC Chain Store Sales increased 1.7% in Nov 26 Wk
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The International Council of Shopping Centers (ICSC) reported that chain store sales rose by the most since the week ending June 25th, gaining 1.7% from the prior week, while growing 4.0% over the prior-year period during the week ending Nov 26th which matched the strongest gain since July 30th. According to the ICSC-Goldman Sachs’ consumer tracking surveys, the average holiday-gift completion rate of those already shopping was at 44.3% through Sunday, which was similar to its year-ago rate of 44.1%. The percentage of consumers who have not yet started their holiday gift buying was 28% in the latest week, a little higher than last year’s 26%.
Anecdotes suggest Black Friday was strong as it was helped by extra hours at various retailers, but those extra hours also might have pulled forward sales from the weekend (especially Sunday). Although some increased holiday promotional activity this year for apparel specialty retailers drove customer traffic, it was seemingly less positive for sales for the month as weather was not as favorable for apparel compared with last year. “Holiday shopping is certainly in full swing as consumers took advantage of retailers’ extended shopping hours and Black Friday promotions this past week,” said Michael Niemira, ICSC vice president of research and chief economist. “In the coming weeks holiday promotions will continue to drive traffic, as well as sales, as consumers continue to complete their holiday shopping,” added Niemira.
According to Weather Trends International (WTI), national temperatures over the past week ending Saturday were a hefty 6.5°F warmer than last year and 5.9°F warmer than its long-term average. WTI reported that the “Temperatures over the Black Friday weekend were very unseasonable and the second warmest in more than 19 years which was a positive for store traffic, but a negative for cold weather categories. Temperatures saw their greatest year-on-year change towards warmer weather in decades for Black Friday with roughly a +10°F rise over last year.” The U.S. Energy Information Administration said that gas prices dropped sharply by 6.1 cents to $3.307 on Nov 28th, up 15.8% from a year ago, which was the slowest year-on-year gain since late January. For all of November, ICSC Research projects industry sales rose 3% to 3.5% excluding the impact of fuel and 3.5% to 4.0% with fuel.
Posted: November 29, 2011 Tuesday 07:45 AM