Still struggling with lower sales becasue those economic stimulus checks didn’t make it to your cash till?
You’re not alone according to a report in Chain Store Age by IHL Group, an analyst firm and consultancy that serves retailers and technology vendors.
According to the report, $92 billion in stimulus checks have been delivered to consumers’ mailboxes to date. However, a majority of that total was gobbled up by quickly increasing fuel and food prices, the study said.
For 12 months ending Aug. 1, consumer gas and food prices jumped $132.4 billion.
“Every sustained one-cent increase in fuel prices takes $1.7 billion a year out of U.S. consumers’ pockets for other spending,” said Greg Buzek, president of IHL Group.
“These are lost sales for non-fuel retailers, restaurants, auto dealers,” he said. “And sales lost to the retail economy in the past year due to a sustained rise in gas prices equates to the combined annual revenues for Kroger and Target.”
THE REAL WORLD RETAILING TAKEAWAY
Sometimes you just have to wait it out.
It’s tough out there, all over the place. Rising fuel and food prices are tamping down any notion of increased sales for retailers.
In fact, September 15 is the date that most airlines will cut 15% of their capacity, causing ticket prices to skyrocket, which is going to have a ripple effect across the entire economy as tourism falls dramatically.
Keep our head down and nose to the grindstone, doing whatever you can to sustain your business during these tough times.