Retail sales not good for carriers

Sept. 6, 2001
U.S. retail sales slowed in the last week of August, which is a sign that the slowdown for carriers may continue despite the Bush administration’s attempt to spark the economy with its $38 billion tax rebate. Retail sales fell 0.1% in the latest week, compared with a 0.1% rise one week earlier, according to the Bank of Tokyo-Mitsubishi UBS Warburg's (BTM/UBSW) retail chain store sales index. Carriers
U.S. retail sales slowed in the last week of August, which is a sign that the slowdown for carriers may continue despite the Bush administration’s attempt to spark the economy with its $38 billion tax rebate. Retail sales fell 0.1% in the latest week, compared with a 0.1% rise one week earlier, according to the Bank of Tokyo-Mitsubishi UBS Warburg's (BTM/UBSW) retail chain store sales index.

Carriers are affected by a fall in retail sales because stores inventories decline more slowly, reducing demand for product deliveries.

The government began sending tax refund checks of $300 for individuals and up to $600 for families in July, and will continue to do so until the week of September 24. Analysts say consumer spending, which accounts for two-thirds of the economy, should accelerate with the refund checks, although it has yet to make a dent in the economy despite a 0.2% July rise in retail sales.

Neiman Marcus Group Inc. said last week that sales at its stores open at least a year fell 0.8% from a year ago in August, indicating that consumers bought fewer high-end goods.

Starbucks Corp. announced last week that same-store sales rose 1.0% in August, which ties its record for worst monthly performance since it went public. In its history as a public company, Starbucks had posted same-store growth of 1% only twice. The company has never reported a monthly decline in same-store sales, he said.

BTM said customer traffic in stores declined for the 18th consecutive week compared with the same time last year.

The BTM/UBSW Weekly Chain Store Sales Snapshot is compiled from the weekly reports of major discount, department and chain stores across the country.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...

Fleet Industry Benchmarks: How does your fleet stack up?

Discover how your fleet compares to industry benchmarks and gain insights from a 2024 Benchmarking Report on maintenance spend, turnaround time, and more. Join us to identify ...

Build a Tolling Program to Manage Toll Fees and Risks

Fleets looking to effectively manage their operational costs should consider their tolling costs. Download the PrePass whitepaper, “Build a Tolling Program to Manage Toll Fees...

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...