NEW YORK (Reuters) - Shoppers continue to spend more this year, spurred by a slow labour market improved and increased income, but enough shoppers are still struggling with their finances any increase will be modest, a specialist industry retail said.
Consumers returned to stores en masse in 2010 and has given retailers since their best season vacation before the recession.
But top retailers such as Macy's Inc. and Kohl Corp. sales disappoint Wall Street as shoppers proved to be more sensitive to price than expected and showed in December, they were ready to take a break from shopping, now that Christmas has passed.
"For consumers who have a job and are not under water with their mortgages, it might be a slight increase in spending," said Ira Kalish, Director of global economic consulting firm Deloitte.
The International Council of Shopping Centers provide sales of same store on foot between 3% and 3.5% in 2011.
"To the extent where they spend, they will be price sensitive and more apt to spend more on things instead of large items," Kalish told Reuters on the sidelines of the Conference of the National Federation of sale detail which began in New York on Sunday.
Discount chains like Target and dollar stores will continue to win shoppers as unemployment remains high, while that from retailers like Home Depot, are struggling until market housing rebounds, said.
Retailers of U.S. profit pink margins by 1 percentage point to 3.4% in the 2009 fiscal year, according to a study by Deloitte, exit on Sunday.
But just as their prospects appear to be improving, retailers are facing a major threat to their gross margins: the doubling of prices for cotton in the past year, which can force them to raise the pricetags on clothing, although buyers are still very aware of the price.
"They have not much flexibility," Kalish says retailers who turn to revenue modest shoppers like J.C. Penney Co Inc.
The Conference of the National Federation of retail sale, which runs until Thursday, characteristics of leaders of major retailers who will discuss the perspectives of retail spending in 2011 and how cope with higher costs of production.
(Reporting by Phil Wahba;) (Editing by Diane Craft)
No comments:
Post a Comment