Consumer spending spree may have just spun itself out
U.S. retail sales grew 1.2% in July from June due to a 4.2% increase in auto sales (thanks to the availability of 0% financing). In contrast sales at electronics stores fell 1% and sales at building and gardening centers dropped 1.2%.
Electronics retailers acknowledge they had a good run, benefiting from tax rebates last summer and consumers' nesting instinct after Sept. 11. Some say the spending spree may have just spun itself out. "People bought what they wanted to buy," said David Goldstein, president of Channel Marketing Corp., a Dallas marketing consultant.
...That's true for James Peacock, who runs a media-research firm in Laurel, Md. He jumped on a five-year, 0% finance offer for a $22,000 Saturn wagon this month. He won't be buying electronics, though. "There's nothing terribly compelling out there," says Mr. Peacock, 51 years old. "I feel like I have what I need." [And] Car makers are "probably just buying business," says John Flanner, who runs Flanner's Audio & Video store in Milwaukee. "No interest is like a free loan."