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Retail Sales Hurt by Increased Interest Rates & Fuel Costs
Fashion retailers showed mixed sales results in June, as department stores lost ground and specialty stores gained, according to the monthly Commerce Department reported.
Squeezed by high gas prices and rising interest rates, sales for all retailers and food service firms retreated .1% in June compared with May, the first decline since February. Sales rose .1% in May and .7 in April.
Seasonally adjusted sales at apparel and accessories stores rose .3% in June, to $17.7 billion, 4.9% ahead of year-ago sales. Sales at department stores slid .3% in June, to $17.7 billion, 2.2% behind June 2005.
"We saw very slow consumer spending in April, May and now certainly June," said Ken Goldstein, economist at the Conference Board. "We're going to continue to see it in July, August and September."
Consumers are reining in spending because they're concerned about their jobs, said Goldstein, who noted the economy added a "meager" 121,00 jobs last month.
"Pay increases haven't really picked up, but prices have," he said, "so they're not only concerned about their jobs, but also their
household budgets, which are starting to be squeezed."
If consumers don't start to feel more secure about their jobs or the state of the economy, retailers will face some tough going, Goldstein added.
4/13
Sales Tax Holiday
Texas state officials say they expect shoppers to save more than $49 million in sales taxes during the eighth annual “Sales Tax Holiday.”
People buying a number of items - ranging from shoes to underwear - will be exempt from state and local taxes August 4-6.
Comptroller Carole Keeton Strayhorn said the estimated savings include $38.5 million in state sales tax and $10.5 million in local sales taxes.
“I love the ‘Sales Tax Holiday,'” Strayhorn said. “It's the one time hard-working Texans keep their money in their pockets for their families' priorities.
“This tax break is real and it is available to everyone. Families save about $8 for every $100 they spend on school clothes for the kids and new outfits for mom and dad.”
Strayhorn said she has pressed lawmakers to add backpacks and school, along with kids' safety gear such as bicycle helmets and car safety seats, and also sewing supplies such as fabric, buttons and zippers for families that make their clothes to the sales tax exemption.
She also said she wants the sales tax holiday to be extended from three to five days and to add a second period in December “to help families stretch their holiday shopping budgets. And I want to ease the sticker shock of buying college textbooks by exempting them from sales tax year round.”
During the Sales Tax Holiday, most clothing and footwear priced under $100 is tax-free. Examples of items that can be purchased tax-free include kids' clothes and school uniforms, adults' clothes and work uniforms, and shoes - including tennis shoes, socks and underwear.
Items that cannot be purchased tax-free include handbags and wallets, jewelry, accessories, and athletic shoes, sports uniforms and safety gear.
Shoppers saved an estimated $47.4 million in state and local sales taxes during the 2005 Sales Tax Holiday. Since the first Sales Tax Holiday was implemented in 1999, taxpayers have saved $287 million, including $226 million in state sales tax and $61 million in local sales taxes.
5/12
Buyers' Best Sellers
Attention
All Buyers, Boutique
and Online Store Owners
McPete Sez wants to know what is your hottest selling garment. What is selling out
because McPete Sez readers want to know. Please send an email to info@mcpetesez.com
and include your name, your store's name, city and state along with a phone number
and email, stating your best seller, and who the manufacturer is.
If you would rather keep your best selling item a secret..... please
just tell us who the manufacturer is.
If your email is chosen, you will be contacted and
your email will be posted in McPete Sez, along with your store
information.
16/24
Johansson Signs with Reebok
Sports brand Reebok has signed a multi-year partnership with acclaimed Hollywood actress Scarlett Johansson to co-create a collection called Scarlett ‘Hearts’
Rbk.
The 21-year-old’s range will be grounded in sport and will feature head-to-toe looks designed to take women "from the studio to the street in style", Reebok said.
Johansson will also feature in the brand’s new global women's advertising campaign, which will be launched in spring 2007.
"Reebok is thrilled to partner with Scarlett because she is a world-renowned style icon and truly an inspiration for today's young women," said Reebok's president and CEO Paul Harrington.
Johansson, who was recently voted ‘Best Dressed’ in an online poll conducted by Yahoo!, said: "Reebok has a rich heritage in developing and designing cutting-edge women's product which makes them an ideal company to partner with to launch 'Scarlett Hearts Rbk'," said Johansson. "I am very enthusiastic about working with Reebok to design this line."
Reps Wanted
Elegant Moments is
looking for sales reps nationwide. Complete line of leather,
costumes, hosiery and packaged lingerie.
Contact Gene at 570-489-9861 chajan22@aol.com
1/6
Why Dogs Attack
Dreamgirl Introduces a Gift Set Promotion for Valentines
Christopher Scharff, CEO, of Dreamgirl International unveiled Dreamgirl’s 2007 Gift Set Promotion for Valentines.
“In order to assist our retail customers with their Valentines’ selling, Dreamgirl
 is offering the following Gift sets at low promotional pricing to assist retailers in hitting very attractive retail price points,” commented Scharff.
These gift sets include a Peignoir set featuring soft cap sleeves and a trendy Empire waistline gives a silhouette that is flattering to all figures and includes a Stretch Lace and Mesh babydoll with matching cap sleeve robe in One Size Fits Most and includes a printed Gift Box.
Other Gift sets include shirred Lycra net wrist cuff restraints with silver chains and matching thong or Lycra panties with dangling beads and matching multi strand beaded necklaces.
With a solid array of well-received new product introductions, Dreamgirl International is looking forward to another exciting and record setting year in 2006.
"Ask Andy"
Andy Weinstock has been in the fabric and textile business all his life, but professionally since 1969. 
"I love what I do, selling fabrics around the globe. I've met lots of interesting, creative, dynamic
folks; some have become dear friends. I love to help new businesses find the things they need to become successful. It works for everyone."
You can ask Andy questions about Fabrics at
Andy@mcpetesez.com
The "Ask Andy" Column is an opinion Column and may
not necessarily reflect the views of
McPete Sez
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