Chain Store Sales Off on Lower Gasoline

New York, October 24, 2006–Chain store retail sales fell in the latest week after rising for the last two weeks as gasoline prices declining to their lowest level since December, a retail report said on Tuesday.

Weekly sales slid 1.1 percent in the week ended Oct. 21, compared with a 0.6 percent increase in previous week, the International Council of Shopping Centers and UBS said in a joint report.

The sharp drop in gasoline prices since late summer may be felt disproportionately by various income groups with prices still high enough to crimp spending among lower-income families, those making $35,000 or less annually, said Michael Niemira, ICSC’s chief economist.

“In October that group’s discretionary spending continued to be dragged down disproportionally — an indication of the unevenness of gasoline price declines on spending,” Niemira wrote in the group’s latest report.

Prices on U.S. regular unleaded gasoline averaged $2.208 a gallon for the week ended Oct 23, the lowest since $2.197 a gallon in the week ended Dec. 26, 2005, according to the U.S. Energy Information Administration.

Meanwhile, colder-than-normal weather continued to play a positive factor for retailers, driving sales of winter clothing, Niemira said.

Compared with the same week a year ago, sales gained 2.9 percent after a 3.9 percent rise year-earlier advance in the prior week.