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ICSC-Goldman Sachs Retail Chain Store Index Fell

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ICSC-Goldman Sachs Retail Chain Store Index

The ICSC-Goldman Sachs Retail Chain Store Index showed a similar fall in comparable sales for US retailers. The index fell by 0.20% for the week ending October 10, 2015—compared to the week before. In contrast, it rose 1.3% on a YoY (year-over-year) basis. The index has been falling for the last three weeks. It fell by 2.6% in September.

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About the index

The ICSC-Goldman Sachs Retail Chain Store Index is released by the International Council of Shopping Centers. It’s released every week. It measures US retailers’ comparable store sales. The index is a highly recognized measure that gauges the consumer spending patterns in the economy.

Key takeaways for the retail sector

A falling trend in the above-mentioned indexes signals a reduction in consumer spending at the retail stores. This isn’t good news for brick and mortar retail companies like Macy’s (M), Nordstrom (JWN), and JC Penney (JCP). The top-line organic growth is a crucial indicator for stock and bond markets. This metric measures organizations’ financial health. The falling comparable store sales growth can be a crucial factor. It can impact retail stocks’ performance in the next earning season. Investors watch organic growth closely.

The Consumer Discretionary ETF (VCR) and the MSCI Consumer Discretionary Index ETF (FDIS) are some of the ETFs that can be impacted if the indexes continue to fall.

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