Retail sales may be poised for a strong recovery, as over half of North American consumers expect to increase their spending once the economy improves, according to an ICSC survey released at this week’s New York National Conference.
Consumers are optimistic regarding the next 12 months, with more than 40 percent believing their financial situation will improve. Forty-seven percent believe it will stay the same while just 11 percent say they expect their situation will get worse.
About 80 percent of the 2,500 shoppers polled in the survey said that they have cut back on spending over the past 12 months.
“Clearly consumers have the where-with-all to spend and there is a great pent-up demand to shop,” said Michael P. Kercheval, ICSC’s president and CEO. “It appears consumers’ perception of the economy versus the reality of their own financial situation has caused them to reign in their discretionary spending. With many economic indicators suggesting an economic recovery is underway, the results of this survey are good news for retailers and shopping center owners,” he added.
This study represents the first phase of a quarterly tracking study commissioned by ICSC. The data in this study provides some insight into changes in consumer behavior and attitude over the past year, and will be used as a benchmark for tracking shoppers going forward.
“Consumers will come back once they have de-leveraged and have more confidence in their job security,” said ICSC’s chairman Peter Sharpe, president and CEO of The Cadillac Fairview Corp., in a presentation at the conference. “When consumers regain their confidence they will return to their old shopping habits and haunts.”
Nearly 6,000 people attended the conference, which was held in New York City.
