Colorado Springs Retail Briefs: June 20, 2008

Joan Johnson

Retail shipping service owners have found that offering U.S. Postal Service products and services makes good business sense and pays dividends.

Since its inception two years ago, more than 2,000 retail shipping service operators have surpassed $40 million in sales by participating in the Postal Service's Approved Shipper program.

"The Approved Shipper Program enables the Postal Service to become more competitive in the retail package market while providing our customers with alternate access to postal products and services," said Kathy Ainsworth, USPS retail vice president. "Retailers have the option of adding a surcharge while continuing to sell competitor products and services."

Other benefits include the program's no-fee license agreement, free signs and other materials.

To offer postal products and services, retail shippers must:

Currently use a postage meter or PC Postage account.

Ensure physical security of the mail.

Properly display Postal Service signs.

Comply with aviation security and hazmat requirements.

Follow the Postal Service product guide for approved shippers.

Accept Click-N-Ship and other prepaid packages.

Obtain approval of the Postal Service's local district manager.

May sales boost industry

With a little help from Uncle Sam, consumers headed back to the stores during May. According to the National Retail Federation, retail industry sales (which exclude automobiles, gas stations, and restaurants) jumped 3.8 percent unadjusted compared to last year and 0.9 percent seasonally adjusted month-to-month.

May figures released by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 1 percent seasonally adjusted from the previous month and 3 percent unadjusted year-over-year.

"Thanks to the tax rebate checks consumers received last month, the economy got a nice shot in the arm," said NRF Chief Economist Rosalind Wells. "It's evident consumers are feeling a bit more confident about their expenditures, especially with both April and May sales seeing positive increases in many sectors."

As predicted in NRF's tax rebate consumer spending surveys, most shoppers hit discounters and grocery stores, stocking up on necessity items.

Sales at grocery stores increased 0.6 percent seasonally adjusted from April and 8.5 percent unadjusted year-over-year. General merchandise stores sales increased 1.2 percent seasonally adjusted month-to-month and 7.4 percent unadjusted compared to last year.

While many consumers focused on groceries and other necessary items, some did splurge. Sales at electronic and appliance stores increased 0.7 percent seasonally adjusted month-to-month and a solid 4.4 percent unadjusted year-over-year. Clothing and clothing accessory stores sales increased 0.5 percent seasonally adjusted from April and 2.4 percent unadjusted compared to last May.

Sporting goods, book and hobby merchandise also benefited, with sales last month increasing 0.7 percent seasonally adjusted month- to-month and 4.4 percent unadjusted year-over-year.

Health and personal care stores sales also were a bright spot, with sales increasing 0.8 percent seasonally adjusted from last month and 4.9 percent unadjusted year-over-year.

2nd Whole Foods location

Whole Foods Market has opened a second location in Colorado Springs, at First & Main Town Center in the former site of Wild Oats.

"We've made mammoth changes to the store ... shoppers will see just how much more than just the name has changed," said Leonard Chabiel, store team leader at 3180 New Center Point on Powers Boulevard. "The difference is tangible."

Gas prices affecting Fourth

With the rise in gas prices, consumers are thinking twice about their July 4th plans.

According to the National Retail Federation's 2008 Independence Day Consumer Intentions and Actions survey, conducted by BIGresearch, 59.4 percent of consumers say increased gas prices will impact their spending for the holiday, up from 42.1 percent of consumers last year.

Additionally, almost 200 million Americans (87.8 percent) believe that gas will cost more by the Fourth of July than it does now. Consumers expect that the average price of gas nationwide will be $4.39 per gallon on July 4.

This year, nearly two-thirds (61.2 percent) of consumers will light up their grills or attend a cookout or barbecue. Additionally, consumers will attend a fireworks celebration (40.2 percent), go to a parade (10.5 percent) and travel or take a vacation (11.2 percent).

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