U.S. Retailers Hopeful 2010 Sales Will Spike Higher
Investors are hoping 2010 will be a turnaround year for the U.S. economy and the stock markets. They’re hoping stronger consumer spending than we saw in 2009 will prompt the turnaround.
Wall Street started the new year riding momentum from last year’s strong rally. However, now the focus is on the health of the American consumer. UPI.com reports that retail sales fell sharply in the week ending Jan. 9, 2010. Although U.S. retailers reported retail sales were down 3% from the previous week, they were up 1.7% from the same week a year ago.
The 3% drop from the previous week can be most likely tied back to 2009 holiday shopping. Now, there are few incentives for shoppers to bargain hunt as U.S. retailers withhold deep discounts.
According to a study released by Deloitte Touche Tohmatsu and STORES Media, U.S. shoppers are set to spend more in 2010. The study also suggests that as the U.S. recovers from the recession, retailers will enjoy pent-up consumer demand.
Moody’s suggests retail sales could rise 3% to 4% above 2009. Of course, that is based on improved economic conditions.
However, a report from McKinsey Quarterly says the economic downturn has fundamentally altered the way U.S. consumers shop. While there may be pent-up demand, it might not be for expensive brands.
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