ShopperTrak Predicts 1.0 Percent Total U.S. Foot Traffic Decline for Q3
2.6 Percent Retail Sales Increase Expected for Same Period
CHICAGO, IL, July 8, 2010 – ShopperTrak today predicted both retail sales and traffic for Q3, 2010 will be relatively positive compared to the same three-month period last year. According to the company’s Retail Traffic Index (
ShopperTrak reports back-to-school shopping (a retail period second only to the Nov. / Dec. holiday season) will once be the star of the show in Q3, driving retail spending throughout August. While the company’s data shows retail sales during “back-to-school” 2009 slipped 4.9 percent, it does not expect a repeat of this dismal performance as value-driven consumers and pent up demand are pointing to relative recovery for retailers in 2010. Pointing to this fact, ShopperTrak’s data shows year-over-year GAFO retail sales have increased in 21 of 26 possible weeks so far this year.
Although the retail traffic intelligence provider expects a slight uptick in Q3 sales, Bill Martin, co-founder of ShopperTrak, warns several economic conditions could drive both retail sales and traffic downward over the next three months.
“As with several sectors, continued slow growth in the job market could have an adverse effect on retailers over the next three months,” Martin said. “This added to the possibility of even higher gasoline prices could mean fewer shopping trips to the malls, which could also negatively impact retail performance.” Martin continued: “That being said, consumers have proven willing to spend this year and pent up demand should materialize during back-to-school season as old wardrobes and other necessary items must be replaced.”
Looking back at Q2, ShopperTrak’s NRSE reports retail sales rose 2.8 percent while the company’s SRTI shows traffic fell a larger than expected 4.0 percent compared to the same period in 2009, most likely due to a nearly 20 percent increase in gasoline prices. ShopperTrak forecasted a 2.4 percent sales rise with a 1.6 percent traffic decline for the period.
“Although traffic fell a point and a half higher than we anticipated, sales actually performed better, which once again points to consumers spending more at the mall during fewer trips which is a positive pattern we’ve seen in retail throughout 2010,” said Martin.
Developed by ShopperTrak, the NRSE provides a nationwide benchmark of retail sales. It is derived from the U.S. Commerce Department's GAFO (general
merchandise, apparel, furniture, sporting goods, electronics, hobby, books and other related store sales) statistic, as well as ShopperTrak proprietary industry intelligence on shopper movement and sales statistics.
The ShopperTrak Retail Traffic Index™ measures traffic across five separate retail segments including total
A privately held entity, ShopperTrak leverages 20 years of retail expertise to be the industry's authority for information and analysis of the movement of shoppers in retail environments. ShopperTrak's cutting-edge shopper tracking products and indices offer retail intelligence solutions that enable companies to better understand retail trends and the impact of store and staff performance on company revenues. With more than 50,000 units installed in the world's best known retail outlets and malls, the company's solutions also provide a proven means for retailers to gauge labor efficiencies, advertising and marketing efforts, store design and remodeling programs, merchandise changes, associate training programs, and other budget-intensive strategic initiatives. For more information visit http://www.shoppertrak.com.
EDITOR'S NOTE: The data contained within this news release is the property of ShopperTrak RCT Corporation and may be reprinted, published or broadcast, provided proper credit is given to the National Retail Sales Estimate (NRSE), the ShopperTrak Retail Traffic Index and ShopperTrak RCT Corporation as the supplier of the information. Please contact Aaron Martin at
