Low unemployment and rising wages will keep stoking consumer spending, Splashlight CEO James Ingram tells Reuters' Fred Katayama.
US retail sales grew solidly and made this for the second straight month. Up one half percent. We'll figure it deeper dive in the retail sector with James Ingram he's the yields last while and changed but this comes toppled one point 3% increase in April so. Is consumer back. But just like spending online is definitely contributing significantly so I think their numbers showing that they're they're out there it's convenient they'll spend. All what does this mean for consumer spending outlook for the second quarter. I think with. Unemployment at its lowest point in history I think that the trend should continue I think if if the retailer's product mix and it means states there I think they can spend. Well what's driving that is it higher wages is it. The gas prices that people kept saying you know economists table low gas prices are gonna kick and at some point get and that's that well I think. Some have said that they gas prices influence to consumers and outweigh that if they have a little bit more discretionary spending they'll find ways to do that and the the online convenience that these retailers are putting in from the consumers is kept capturing that small additional raw amount of spending half. Well core retail sales rose zero point 4% last month. Jane how does that square with the disappointing jobs report that we got last week well. I I don't know that I can speak to why do the job point there but I think if you dig into the numbers and you see it. The rise of the the wages I think the confidence that they have around the gas prices I think it is allowing dances to spend their money slipped slightly more than they might. Looking at the end numbers put up by the Commerce Department today. Carol sales rose as well and on the same day we got it yet disappointing results from Neiman Marcus that comes on what other displaying results really from the likes. Putts and today Macy's Nordstrom would have the so why are department stores doing better when apparel sales are rising. Well I think it's because there's so many on line players look at Amazon and there are others single online only type players. That are creating a convenience that are allowing the consumers to shop to discern to look. Whereas the retailers are burdened with the stores although if you look inside their numbers there online revenue is growing. So as you look at that one out of every ten dollars is spent on line last year which is up 15% from 2014. If your position to reach the consumer online and be convenient and and price competitively. You're gonna you're gonna outpaced these retailers that are burdened with. With stores some of the department store executives have been saying all. Consumers are spending more experiences. Instead is that the case is that just an excuse stories is that they're there were dining Morton you know go out to restaurants as well. Ticket sales there. Well I think if you consider that. Compete competing for online sales or horses and experience. I think there probably is some truth to that when you go to a mall or going for different reasons. Because you can do your shopping other ways. And if you're limited on time which is he the American people are limited on time. And I can completely shop it leaves me other time to do things like the movies like bowling like those other experiences that are doing. Let them all those cases it because it was back and stay especially online things like atmosphere again. Our thanks to James finger of flashlight I'm Fred Katayama this is what.