Retail Shoppers Returning to Normal, Gasoline Takes Less Out of Budgets, Leaves More For Life's Luxuries

Furniture World Magazine

In April, after months of turmoil and uncertainty, the nation's shoppers are returning to normalcy, as retail and food service sales through April 2003 reached $1,163.7 billion, up 4.5% over the first four months of 2002. As the price of gasoline fell sharply in April, consumers' adjusted their budgets to spend more on luxuries and non-essentials, according to the latest statistics release by the Department of Commerce. With a late Easter this year, clothing and accessories stores benefited from more consumer spending, as sales rose 2.1% in April over March 2003. Consumers indulged in more spending on jewelry, with jewelry store sales up 2.3% in the first quarter compared with 2002. Increased spending on the garden boosted the nation's building materials, garden equipment and supplies dealers, whose sales jumped 22.3% over March as consumers turned their attention to enhancing the outdoor living areas of their homes. Fueled by a passion to reconnect with the external world, 'butterfly' consumers spent more money dining out this year, with sales at food service and drinking establishments up 4.3% for the first four months of 2003. The signs are positive through the rest of the year for motor vehicles and parts dealers, food and beverage stores, health and personal care stores, general and mass merchandisers, non-store retailers, especially the Internet e-commerce sites, and food services and drinking places. But some categories showed weakness through the first four months of 2003. Furniture and home furnishings stores struggled with only a .8% sales increase over the first four months of 2002. Electronics and appliance stores are down .3%, while sporting goods, hobby, book and music stores declined 1.5%. Traditional department stores are continuing to have a bad year, as retail sales are off by 5.8% compared to last year. The nation's miscellaneous retailers, including many independent 'mom & pop' type stores, are down .6% from last year. Information supplied by Pam Danziger, president, Unity Marketing, author of “Why People Buy Things They Don't Need” http://www.visibilitypr.com/html/focus/clients/pop/um_09_frameset.html