The planets seem to be aligned for retailers right now if the latest Retail Sector Performance Index is any indication. The latest Executive Opinion Survey conducted by National Retail Federation (NRF) and the Bank of Tokyo Mitsubishi Ltd. (BTM) shows that retail executives are feeling better about all aspects of their business, with the inventory picture looking better than it has in months.
The resulting Retail Sector Performance Index, or RSPI, is based on a scale of 0% 100% with 50% equaling normal.
“The back-to-school shopping season appears to have given the retail industry a much needed sales boost,” said NRF President Tracy Mullin. “We are hopeful this is a sign of good things to come as retailers prepare for the holiday season.”
Since we last reported on this survey in June, the retailer Demand Index, which measures retail executives relative optimism on items such as Sales, Customer Traffic and Average Transactions, has jumped more than 1000 basis points to 56.1, with all lines showing improvement.
We also saw a large shift in the attitude about inventories, reflected in an index that was the lowest since March. The Employment Index held steady from June.
Retail executives also appear to be looking for even brighter times ahead as the most recent Demand Outlook Index, which is a six-month outlook for sales, rose to a very strong 63.3, which was its highest reading since the survey began and an 80 basis point rise since Julys survey.
>>> Lets hope that good feeling about future sales frees up the open-to-buy a little for Q4…
