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  1. #1
    ABW Ambassador isellstuff's Avatar
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    Gas and Food Prices Affecting Retail?
    Hi,

    I am seeing a decline in retail sales on the same volume and quality of traffic. It started the last week of April. In particular, I am seeing fewer big ticket item purchases versus last year.

    It is a little alarming to see this year's retail sales trending a little worse than last years. My best guess is that food and gas prices have really cut into discretionary spending.

    I saw a report on CNBC today that seemed to validate this opinion, although my impression is that retail sales over the last 2.5 weeks contracted a bit versus 2009.

    April Retail Sales

    I'm curious if anyone else has had a similar experience, ignoring big G's Panda-monium?

    Thanks!
    Last edited by isellstuff; May 12th, 2011 at 06:34 PM.
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  2. #2
    Beachy Bill's Avatar
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    My best guess is that food and gas prices have really cut into discretionary spending.
    That's almost a given. I fill up occasionally - and watch those prices spin on the commuter vehicles and SUVs at teh next pump. I'm glad I commute in bare feet. Our biggest gas expense* is heading to the beach a few times a month.

    Sooo...I've been adding some verbiage similar to "Save gas by shopping right here" to some of our sites. Too soon to tell if it will help and don't have time for split-testing right now, but it surely can't hurt.

    *Actually, my biggest gas "expense" goes up in the air. But that's charged off to R&R.
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  3. #3
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    I've actually seen numbers going up, BUT I have not been getting ANY big ticket sales like I have in the past.

    Bill, I intend to blatantly, and with malice aforethought, steal this line: "Save gas by shopping right here" (or a very similar statement that would still be considered plagiarism). People's Court or Judge Judy?

    But seriously, bucking the normal trend of gas prices increasing as summer approaches, the "experts" are saying gas prices will go down around 50¢/gal by early summer.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  4. #4
    Beachy Bill's Avatar
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    the "experts" are saying gas prices will go down around 50¢/gal by early summer.
    Oh, great! I'll bet "they" are hoping that will make people happy (and complacent) to be paying "only" $3.50 a gallon. Those that remain un-happy will still be our target demographic.
    People's Court or Judge Judy?
    Neither. At ASE11 you can buy me a drink - then I'll buy you a drink and we can call it even.
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
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    If you are too busy to laugh you are too busy.

  5. #5
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by Bill View Post
    Neither. At ASE11 you can buy me a drink - then I'll buy you a drink and we can call it even.
    Deal. [I now have a license to use the phrase. ]
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

  6. #6
    The "other" left wing davidh's Avatar
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    Absolutely. Things like this are the biggest reason why it is best to try and sell things that people NEED (or *think* they need). Or to target customers who are not affected by prices of day-to-day necessities like this... "rich" people who have money to burn on stupid overpriced designer-label garbage.
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  7. #7
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    I think a lot of this depends on your target demographic. If your main product is sold to people who have a higher percentage of disposable income they may not react to an increase in expenses. We(USA) are a country addicted to credit card debt.

  8. #8
    ABW Ambassador isellstuff's Avatar
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    I find it interesting that the stock market just figured out what I knew three weeks ago, e.g. the economy was slowing. I think gas prices are the biggest culprit, but here is a report that claims that the Japanese Earthquake has caused a lot of problems due to the affects it had on automobile manufacturing in the United States. It says there has been a trickle down affect throughout our economy.

    News Headlines

    When the stock market tanks, people don't feel as rich and also feel uneasy about the future. As a result, they don't spend as much. I "feel" that this is especially true for small business owners who worry about the economy's affect on their future sales.

    [edit] Well, I should say, the financial press... I think some stock traders knew at the same time that I realized it... The insider knowledge some of these guys get is amazing...[/edit]
    Last edited by isellstuff; May 25th, 2011 at 03:33 PM.
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

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