ICSC Chairman Predicts Solid Holiday With Less Spending
Retailers can plan for a good Christmas holiday season, said Charles Grossman, chairman of the New York–based International Council of Shopping Centers. He gave a “State of the Industry” address at the organization’s fall conference, held Oct. 16–18 at the Manchester Grand Hyatt in San Diego, Calif.
“Consumers will still pay full price if the merchandise is appealing enough,” Grossman said, “although there are suggestions of increasing stress on lower-income families via higher fuel prices and debt loads.”
ICSC’s researchers forecasted economic growth for the non-automotive retail sector of 6.7 percent for the second half of 2005 compared to the previous year. Apparel and department stores experienced a mixed economic year with anemic 1.4 percent sales growth over the previous year.
One of the growth stories for 2005 was businesses that serve the high-end and luxury market, such as Nordstrom, Coach and Burberry.
Although good economic news continued to show that disposable personal income grew by 5.1 percent in the second quarter of 2005 over the previous year, Grossman mentioned that a survey conducted Sept. 22–25 by New Jersey–based Opinion Research Corp. found that increasing numbers of consumers are reducing their discretionary purchases. Out of 1,000 consumer households surveyed, 54 percent were reducing discretionary purchases due to high fuel prices.
The conference featured several seminars, including a panel discussion in which marketers and architects recommended that shopping mall developers look overseas for inspiration on shopping center renovation and real estate opportunities. Panelist Stanley L. Eichelbaum, a marketer, said: “America wrote the book on shopping centers, but it is outdated.”
California Apparel News Retail Editor Andrew Asch participated in a panel for the seminar “The Media Looks at Shopping Centers.”
