Shopping forecast mixed
23.03.2008 02:05
Shopping
- Source: JS Online
The early Easter date is putting a chill on spring clothing sales, according to a new survey from the National Retail Federation. Consumers say they will spend less this year on clothing for Easter - an average of $54.82, down from $56.03 - and about the same overall on holiday items. But spending on food is way up, to an average of $49.16, from $43.79 for those who celebrated Easter last year. Food prices surged in 2007, according to a report from the Federal Reserve Bank of Kansas City, posting the highest gains in almost two decades. On an annual basis, retail food prices rose 4% above 2006 levels. Nationwide, consumers are expected to spend $14.4 billion on Easter, including clothing, candy, flowers, food, decorations and greeting cards. That translates to $135 per consumer, about the same as last year. In the Midwest, spending is expected to be the lowest in the country, at an average of $117 per consumer. By comparison, consumers in the Northeast plan to spend the most, an average of $160. The March 23 date for Easter this year is the earliest in 95 years, the retail federation said Last year, March 20 through 23 was exceptionally warm, according to Planalytics, a forecasting service. This year, Planalytics is forecasting below-normal temperatures in the Northeast and Midwest for Easter weekend. Discount stores - such as Wal-Mart and Target - will get the biggest share of Easter business, the survey says. In the Midwest, 60.7% of consumers plan to shop the discounters for their Easter needs. Department stores aren't anticipating a good month. "We expect March to be down, too," Bud Bergren, chairman of Bon-Ton Stores Inc., which operates Boston Store, told investors this week in New York. "Easter is early, but it's not really a plus for us." The holiday is a negative for most retailers because it's one of the few days when they are closed.
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