The ICSC-Goldman Sachs index of U.S. chain store sales for the week ending June 6 rose by 0.2% from the prior week, but dipped 0.8% from the prior year, marking the weakest performance in five weeks.
ICSC suggested that a confluence of factors pared consumer demand, including a cooler week temperature-wise than last year (according to Weather Trends International, “national temperatures last week were 3.9 degrees colder than last year,” and 1.2 degrees below the long-term average, which pared seasonal-goods demand), rising gasoline prices (regular-grade gasoline for the nation increased 57.5 cents per gallon over the last six weeks and stands at the highest level since Oct. 27, 2009, which cut into discretionary-spending potential) and tough sales comparisons with June 2008 when tax-rebate monies were distributed. The index showed customer traffic slowed over the last week, especially at discounters.
“As weather turned cooler than last year, gasoline prices continued to inch higher and the industry faced tax-rebate-inflated sales comparisons, the fiscal month of June began on a soft note on a week-over-week,” said Michael P. Niemira, ICSC chief economist. He expects June sales, less Wal-Mart, will be down by four to five percent, compared with the 4.6 percent decline in May 2009.
