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Consumer spending has rebounded following a positive, albeit slower than anticipated holiday season, according to analysts with Great American Group, Inc. Post-holiday results in January were hampered by lower paychecks resulting from certain tax break expirations. The current outlook, however, is cautiously optimistic.
Great American Group’s latest Retail Monitor notes that consumers continue to feel the pressure of elevated gas prices and a high unemployment rate, and therefore have been cutting back on excesses by preparing more meals at home and searching for deals.
Yet regardless of the spending caution, there continues to be some bright spots in the retail sector. “E-commerce continues to shine, and many off-price, discount and dollar store retailers continue to report positive results as consumers look to save,” said David Triompo, managing director of consumer products for Great American Group's Advisory and Valuation Services division. “Many dollar stores have also been expanding their store bases.”
Other retail sectors are more in flux. “The consumer electronics market continues to be altered by changing mobile phone technology and other factors; and the books, music and video sectors have been on the decline,” Triompo added.
Although the economy remains fragile due to a number of macroeconomic concerns, industry analysts are hopeful that consumers will weather the storm and increase spending going forward.
Woodland Hills, Calif.-based Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies.