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.
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.