New York, NY, August 23--Chain store retail sales fell for the third consecutive week, as retailers felt the effects of consumers cutting back on spending due to record high gasoline prices, a retail report said on Tuesday.
Sales fell 0.3 percent in the week ended Aug. 20, compared with a 0.2 percent fall the previous week, the International Council of Shopping Centers and UBS said in a joint report.
Compared with the same week a year ago, sales softened to a 4.0 percent increase after a 4.4 percent rise the preceding week.
"Despite the fact that some retailers are faring rather well with back-to-school sales, record high gasoline prices have begun to take more of a toll on consumer spending," said Michael Niemira, ICSC's chief economist and director of research.
"According to special consumer gasoline-price-impact survey, which was conducted by the Opinion Research Corporation during the period of August 18-21, 2005, found that 58 percent of households are now reducing their discretionary spending on items such as clothing, shoes, jewelry, consumer electronics, at restaurants, on spa and beauty services or on other non-essential purchases," Niemira added
Given the current consumer spending trends, ICSC expects that for August sales are likely to increase about 4.0 percent, on a year-over-year basis.
The ICSC-UBS Weekly Chain Store Sales Snapshot is compiled from a group of major discount, department and chain stores across the country that report their weekly results.
