While people are still showing signs of caution when it comes to spending money on retail, local businesses are finding their sales unaffected.
Consumers spent slightly more this August than they did at the same time last year, but overall, spending has been slow to rebound from the recession, according to a news release from MasterCard Advisors.
Data was generated using MasterCard’s SpendingPulse — an economic report that tracks retail and service sales nationwide based on collective MasterCard sales activity combined with estimates for other payment forms, including cash and check.
Clothing in particular took a notable hit in retail.
Compared to August 2009, sales on women’s and men’s clothing dropped this August with men’s clothing sales falling 1.9 percent and women’s clothing falling 2.7 percent.
Leah Messer, manager of local clothing and accessory boutique Merci Beaucoup, said last month’s retail revenue for her store wasn’t lower than usual.
“We had a lot of success with back-to-school shopping and people coming in to buy sorority stuff,” Messer said.
Messer said people frequently buy smaller items over larger, more expensive ones.
“People are more willing to buy things like jewelry than bigger purchases like a whole new outfit,” she said. “Little gifting items also
do better.”
Messer said shoppers are looking for reasonable prices.
“We’re successful because we are money conscious,” she said. “People don’t want to feel like they’re spending too much.”
Charlotte Cox, manager of local T-shirt store Storyville, said in-store sales have been consistent in the last year.
“In the South, we haven’t really felt the full effects of the economy quite yet,” Cox said. “But people are more reluctant to spend money on higher-end clothing.”
Robyn Haney, biological sciences junior, said she tries to shop responsibly.
“I usually wait for sales,” she said. “Or I’ll use gift cards for the pricier things.”
Online sales rose 7.2 percent from last year, representing a consistent increase in the past 13 months.
Jessica Hebert, sociology freshman, said she does all of her shopping online.
“It’s faster, easier and almost always cheaper,” Hebert said. “I also get e-mail alerts when my favorite stores are having sales, so that helps.”
Jared Loftus, owner of TigerDistrict.com, an online-only LSU apparel store, said his business hasn’t been affected by the economy.
“Our success is more related to the football team,” Loftus said. “The economy can be great, and people may not be buying stuff, or the economy can be bad, and we get people shopping here.”
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Contact Sarah Eddington at [email protected]
Retail sales indicate slow economic rebound
September 18, 2010