iPhone Cuts Into General Retail Sales

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iPhone Wells Fargo

If your sales are down this week or next, you might blame the iPhone. The mass opening of wallets to buy iPhones this week has left consumers with less to spend at many types of retailers, says Senior Retail Analyst for Wells Fargo,  Matt Nemer.

Nine million new iPhones sold over the past weekend, which led Nemer to examine the past six years of iPhone launches to see if it impacted other categories of goods.  It turns out it has.

Sales at stores such as Dick’s Sporting Goods, Ross Stores, Nordstroms, Coach and Williams Sonoma have all seen declines. It’s not just luxury retailers who feel the pinch,  but any retailer of non-essential goods, Nemer told CNBC.

He added that last week the International Council of Shopping Centers reported the worst growth of that sector since June. “So there does seem there is some tie in with the iPhone launch to other categories of retail sales,” Nemer said.

Grocery stores, Whole Foods and Walmart were not impacted, as these are retailers of “essentials.”

Sporting goods, general merchandise and automobiles have seen declines during iPhone launches in the past.

“I would suspect that the September and even October sales by some of these discretionary categories are affected,” he added.

Source: CNBC

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