Survey: High gas prices to put damper on consumer spending
Orlando, Fla. Nearly three out of five American consumers (57.7%) say they will be forced to cut back on discretionary spending as soon as gas prices reach $3 a gallon, according to research conducted by the BeemerReport.com.
“The double whammy of a volatile stock market over the past two weeks and the prospect of $3-per-gallon gas prices is enough to push consumers over the edge to cut back on spending, just at a time when many were looking to be more positive,” says consumer trend expert C. Britt Beemer.
The areas experiencing the biggest cutbacks will be retail stores, restaurants, movie theaters and the travel industry. Almost 20% of Americans (19.3%) say they will shop less, 19.2% will eat out less often, 10.2% will go to fewer movies, and 7.1% will cut back on vacation plans.
“This parallels consumer behavior in previous years when gas reached $3 per gallon,” Beemer says. “The retail sector tends to suffer most in these conditions, because the consumer has few other options to reduce spending.”
RadioShack extends partnership with Lance Armstrong
FORT WORTH, Texas RadioShack’s chairman and CEO Julian Day announced at the company’s annual meeting on May 24 that RadioShack has expanded its partnership with Lance Armstrong and the Livestrong foundation. The company said it will introduce exclusive Livestrong-branded products and accessories in all stores beginning in July.
DSW sees improved sales, earnings for Q1
COLUMBUS, Ohio DSW announced net income of $30.2 million on net sales of $449.5 million for the first quarter ended May 1, compared with net income of $7.1 million on net sales of $385.8 million for the first quarter ended May 2, 2009. Same-store sales increased 16.2% versus a decrease of 4.7% last year.
Diluted earnings per share were 67 cents for the first quarter of fiscal 2010 compared with diluted earnings per share of 16 cents last year.
The company reiterated its estimate of an increase in annual comparable-store sales of approximately 6% to 8% and annual diluted earnings per share of approximately $1.65 to $1.75 for fiscal 2010. The estimated year-over-year earnings increase is expected to occur in the first six months of fiscal 2010. The second half performance implied in the guidance recognizes the more challenging last year comparisons for both sales growth and merchandise margins.