No doubt the last couple of months of concern over the U.S. going over the fiscal cliff, thereby potentially triggering a recession, has marketers spooked about committing too much when it looks like consumer spending could follow national finances off the cliff.
In common with other major retailers, Somerfield, which runs 664 Somerfield stores and 560 Kwik Save sites, has suffered a drop in like-for-like sales as consumer spending slows down.
The sector, which includes retail chains, hotels, restaurants, and media and entertainment companies among others, is extremely sensitive to conditions like high unemployment and weak consumer spending, but after enduring a bumpy ride for the last few months a rebound may be in the cards.
Even in this consumer boom that is still the vast majority of all tech spending, though consumer devices like an Apple iPhone with a corporate application, or a company building software using Amazon Web Services, make those distinctions harder.
"The sustained pressure on consumer spending was reflected in our like-for-like sales performance, which was not as good as it should have been, " Mr Philips said.
Indeed, as in Britain, the rise in house prices has contributed significantly to the strength of consumer spending, particularly on furnishings and the like.
According to sales data from the American Pet Product Association, spending on pets sure looks like it belongs in the consumer staple sector, not consumer discretionary.
The American consumer will increase spending on a variety of goods, like clothing from Under Armour (UA) and Ralph Lauren (RL) or gadgets from Apple (AAPL).
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They might provide a slight distraction and a temporary boost to spending, consumer confidence, investor confidence, and the like, but that is about it.
So what we want to do is create incentives that stimulate consumer spending, because folks buy materials from home improvement stores like this one, which then buys them from manufacturers.
As the U.S. economy stabilizes, consumer discretionary spending is likely to improve, sparking demand for luxuries like travel and entertainment.
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In some industries, like the consumer-reliant retail sector, the default risk is directly tied to reduced consumer spending.
Optimists like to think that a wave of post-partum euphoria will, for example, help boost consumer spending.
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And I called for the extension of emergency relief like unemployment insurance and health benefits to help those who've lost their jobs, while boosting consumer spending and promoting job growth.
Weinswig also went relatively easy on other value-oriented stores like BJ's, Costco and Dollar General, as she believes they may benefit from conservative consumer spending patterns over the next two years.
The deterioration in consumer spending in turn pushes unemployment higher, creating new budget shortfalls and deeper austerity measures on countries like Spain, Italy and France.
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