Consumer Attitudes & Behavior

Thought-provoking presentations and forward-looking exchanges dominated the annual gathering of the Global Retail Marketing Association’s (GMRA) Executive Leadership Forum at the Don Cesar resort on St. Petersburg Beach, Fla.
 

Washington, D.C. – U.S. consumer spending fell by $8.1 billion, or 0.1%, in April 2014. It was the first monthly decline in consumer spending since April 2013 and followed a 1% increase of $117.6 billion the previous month.

Genesco’s first-quarter results may have been tepid, but the company highlighted its second quarter, which is off to a solid start with a comparable sales increase of 3% through May 24, and expressed confidence that it can build on the current momentum.

The company reported net earnings of $13.97 million in the first quarter of fiscal 2015, down 3% from $14.41 million in the same quarter last year. An increase in selling and administrative expenses drove the net earnings decline.

New York - A pre-tax restructuring charge of $17.3 million during first quarter 2014 in connection with its previously announced strategic realignment was a major factor in a year-over-year net income decline at Ann Inc. Net income for the quarter totaled $5.2 million, down 66% from $15.4 million in the first quarter of the previous fiscal year.

Total net sales for the first quarter of fiscal 2014 were $590.6 million, up 3% increase from sales of $574.5 million in the year-ago period. Total same-store sales dropped 1.8%.

Yonkers, N.Y. – Sixty-two percent of U.S. online consumers have done nothing to protect their privacy on the Internet. According to a recent national Consumer Reports survey of 3,110 adults, one-in-seven online consumers were notified that their personal data had been breached in 2013, a 56% increase from 2012, and a projected 11.2 million people fell for e-mail phishing scams, up 22% from the previous year.

San Jose, Calif. – Second quarter 2014 will be less of a hardship for retailers than the first quarter, which started off the spring season on a negative trend across the metrics of traffic, conversion rate and sales per store (SPS). Data from store analytics technology provider RetailNext indicates that compared to the second quarter of 2013, traffic at brick-and-mortar stores nationwide will be down 6%, SPS flat and sales down 4%.

Every year, one of my personal highlights is the International Council of Shopping Centers (ICSC) RECon convention in Las Vegas. It’s a chance both to connect with the fascinating leaders in our field, as well as to see a few steps into the future. RECon bills itself at the “global convention for the shopping center industry,” and that label is an accurate one: Over 1,000 exhibitors and more than 32,000 attendees make RECon the largest convention in the industry.

Dublin, Calif. – By controlling inventory and expenses, Ross Stores Inc. was able to report a 4% increase in net income during the first quarter of fiscal 2014 despite bad weather and other negative factors. Net income totaled $243.9 million, up from $234.6 million in the same period the prior year.

First quarter 2014 sales increased 6% to $2.68 billion, up from $2.54 billion in first quarter 2013. Same-store sales rose 1%. Ross Stores expects same-store sales to grow 1%-2% during the second quarter of fiscal 2014.