Recent same store sales data seems to suggest high end consumers are opening their wallets and spending again. Recent same-store sales were up 9.5% at Neiman Marcus, Saks reported an 8.1% increase and Nordstrom same store sales were up 3.4%. The mid tier stores actually saw a decline with Kohl’s declining 2.5% and J. C. Penney Co. down 1.9%. The results at high end retailers does seem to be a sign that the higher income consumer is spending again after cutting back purchases during the middle of the recession.
Consumer confidence is not only driven by the level of employment but also by the level of the stock market. The latest release of the unemployment data shows the unemployment rate for individuals with at least a bachelor’s degree is 4.7% which is down from a 5% peak earlier this year. This unemployment rate is half the national average.
|From The Blog of HORAN Capital Advisors|
H/T: Argus Research