The Johnson Redbook Index

Screenshot 2017-12-27 08.46.04

 

Great holiday same-store sales figures as reported by comparable store sales at chain stores, discounters, and department stores.

Redbook Index in the United States increased by 5.70 percent in the week ending December 23 of 2017 over the same week in the previous year. Redbook Index in the United States averaged 2.28 percent from 2005 until 2017, reaching an all time high of 7.60 percent in March of 2005 and a record low of -5.80 percent in July of 2009.

united-states-redbook-index

 

What Is It: A quick glance at weekly sales at key department and chain stores.

News Release on the Internet: No free access. Available only to paid clients. See press stories for the latest chain store sales.

Home Web Address: www.redbookresearch.com

Release Time: 8:55 a.m. (ET) every Tuesday for the week ending the prior Saturday. The monthly report is released the first Thursday of the new month.

Frequency: Weekly.

Source: Redbook Research.

Revisions: Not on weekly figures. Redbook does release a monthly report in which the numbers are revised as more data arrives.”

Bernard Baumohl. The Secrets of Economic Indicators

 

Market Impact
Bonds

Participants in the fixed-income market monitor, if casually, the Redbook and the ICSC-GS chain store sales reports because they are a good finger-in-the-wind measure of consumer spending behavior. If you know what consumers are doing at shopping malls, it tells you something about their appetite to spend. Strong department store sales can make bond investors queasy because of their implications for the economy and inflation. On a slow financial news day, such a report can depress bond prices and cause yields to creep higher. However, traders are usually looking at other larger economic or political news, so the chain store sales report often slips into the background.

Stocks

Investors in equities pay more attention to chain store numbers than their colleagues in the bond market. The weekly and monthly sales figures can set the tone for the retail industry as a whole. Healthy chain store sales growth could result in bigger corporate profits, and that often translates into higher stock prices. Second, these statistics provide some insight into which retailers are doing well and which are ailing, allowing investors with exposure in the retail sector to shift their money accordingly.

Dollar

Currency markets do not react to the chain store sales numbers.

 

-R.W.N II

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.