Some optimistic about US retail sales in 2011
US retail sales rose 4% in the 2010 holiday selling season and should rise 2.2% in the first quarter of this year, a group that measures customer traffic in retail locations said on Monday.
January 11, 2011 / 08:59 IST
US retail sales rose 4% in the 2010 holiday selling season and should rise 2.2% in the first quarter of this year, a group that measures customer traffic in retail locations said on Monday.
Despite the overall sales rise, shopper traffic in November and December -- the biggest selling season of the year for US retailers -- was flat as budget-conscious shoppers made fewer trips to malls but spent more on each visit, ShopperTrak said.ShopperTrak expects shopper traffic to rise 2.8% in the first quarter."Although we're still essentially comparing to depressed levels, the 4 percent sales rise this season is the first real positivity in two years and should be seen as a relatively encouraging sign for retailers heading into 2011," Bill Martin, co-founder of ShopperTrak, said at the National Retail Federation conference in New York.Moody's Analytics chief economist Mark Zandi also forecast sales gains in 2011 and 2012 for retailers."Going into 2011, there are reasons to be upbeat: The job market is clearly improving, the stock market, credit is starting to flow a little more freely," Zandi said at the NRF convention.Echoing the sentiments of chief executives, including JC Penney's Myron Ullman, Zandi praised US government initiatives such as lower payroll taxes that kicked in this month and said the Federal Reserve and tax authorities have to be "aggressive" to boost consumer spending. Consumer spending accounts for about 70% of the US economy."We need to make sure that the economic recovery evolves into a self-sustaining economic expansion," Zandi said. He expects the rate of US job creation of about 100,000 per month in recent months to pick up steam, starting this spring.The International Council of Shopping Centers has forecast an increase of between 3% and 3.5% in same-store sales at leading US chains in 2011.The Standard & Poor's Retail Index was up 0.21% in afternoon trading on Monday, compared with a 0.18% decline in the broader S&P 500's. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
