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Written on May 24, 2008
It might only be the end of May, but soaring oil and gasoline prices mean retailers already need to be looking ahead to a less-than-cheery holiday season as they decide what to order for that key season.
In a study by retail consulting firm WSL Strategic Retail, 60 percent of U.S. consumers agreed with the statement: “I can’t control gas prices, so I’m watching what I spend on little things.”
That study was conducted back in November, when gasoline was averaging only about $3.11 a gallon and oil was trading at about $94 a barrel, a far cry from current prices of $3.79 and $132.
“That’s when we thought it was bad. We didn’t know what bad was,” WSL president Candace Corlett said.
While many consumers are looking forward to summer after finally shutting down furnaces for the season, retailers do not get to bask in the sunshine.
U.S cashadvance.com. retailers must decide soon what to stock for the make- or-break holiday season, a tricky proposition in the best of times, but fraught with peril now that the economy is shifting quickly and unpredictably.
Analysts say they should plan for the worst.
“It’s going to be very muted,” said Rosalind Wells, chief economist for the national Retail Federation. “Even if the economy does pick up a little, which we’re forecasting in the second half, we’re not looking for a strong rebound.”
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