Stores: Shrek ate our sales
05-25-04, 04:44 PM
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Stores: Shrek ate our sales
I just read this on the CNN website and I found it a little entertaining...
CNN Link
Stores: Shrek ate our sales
Retail trade group blames animated film's record box-office performance for drop in weekly sales.
May 25, 2004: 12:41 PM EDT
NEW YORK (CNN/Money) - A retail trade group is blaming the hit movie "Shrek 2" for eating into retail sales last week.
The International Council of Shopping Centers said its weekly sales report showed retail sales fell 0.5 percent in the week ended May 22, compared to the previous week, which saw a fall of 0.8 percent.
Compared with the same week a year ago, sales rose 5.5 percent, but that was down from the 6.2 percent growth pace of the preceding week.
"As potential shoppers flocked to the theaters, chain-store sales were a little less robust," Michael Niemira, chief economist and director of research for the ICSC, said in a statement.
"Shrek 2," an animated comedy about a green ogre, took in a record $128.9 million in ticket sales at U.S. theaters during the five-day opening that started last Wednesday, according to a report from trade publication Daily Variety.
But retail analysts said they doubted that Shrek or any other movie could hurt retail sales.
"It gets people out of their homes and closer to stores. You would think it would boost sales," said Frank Badillo, economist with market research firm Retail Forward.
He said the volatility in the weekly number could mean there isn't any one reason for the slight dip last week.
Retailer analyst Kurt Barnard said he also had doubts about a negative impact from "Shrek 2", and cited another possible factor: rising gasoline prices.
"It doesn't make sense to me," he said. "One of the reasons very clearly why retail sales were a little short of expectations, people have somewhat less money in their pocket from filling the tank."
Despite two consecutive weeks of falling sales, ICSC raised its forecast for comparable store sales in May to a 5 percent pace compared with May of last year, up from its an earlier forecast of a 4.5 percent gain.
The ICSC-UBS Weekly Chain Store Sales Snapshot is compiled from a group of major discount, department and chain stores across the country that report weekly results.
A separate reading of sales from Redbook Research, an independent company, found sales at major retailers rose by 4.1 percent on a year-over-year basis for the week ended May 22, down from the preceding week's 4.8 percent gain.
It attributed the slowdown in growth to inclement weather in the Midwest and the Memorial Day holiday falling later in the month this year.
Redbook said there was some good news for retailers, including customers paying full price for spring and summer apparel as well as for suits and dresses.
--------------------------------------------------------------------------------
Reuters contributed to this report
Retail trade group blames animated film's record box-office performance for drop in weekly sales.
May 25, 2004: 12:41 PM EDT
NEW YORK (CNN/Money) - A retail trade group is blaming the hit movie "Shrek 2" for eating into retail sales last week.
The International Council of Shopping Centers said its weekly sales report showed retail sales fell 0.5 percent in the week ended May 22, compared to the previous week, which saw a fall of 0.8 percent.
Compared with the same week a year ago, sales rose 5.5 percent, but that was down from the 6.2 percent growth pace of the preceding week.
"As potential shoppers flocked to the theaters, chain-store sales were a little less robust," Michael Niemira, chief economist and director of research for the ICSC, said in a statement.
"Shrek 2," an animated comedy about a green ogre, took in a record $128.9 million in ticket sales at U.S. theaters during the five-day opening that started last Wednesday, according to a report from trade publication Daily Variety.
But retail analysts said they doubted that Shrek or any other movie could hurt retail sales.
"It gets people out of their homes and closer to stores. You would think it would boost sales," said Frank Badillo, economist with market research firm Retail Forward.
He said the volatility in the weekly number could mean there isn't any one reason for the slight dip last week.
Retailer analyst Kurt Barnard said he also had doubts about a negative impact from "Shrek 2", and cited another possible factor: rising gasoline prices.
"It doesn't make sense to me," he said. "One of the reasons very clearly why retail sales were a little short of expectations, people have somewhat less money in their pocket from filling the tank."
Despite two consecutive weeks of falling sales, ICSC raised its forecast for comparable store sales in May to a 5 percent pace compared with May of last year, up from its an earlier forecast of a 4.5 percent gain.
The ICSC-UBS Weekly Chain Store Sales Snapshot is compiled from a group of major discount, department and chain stores across the country that report weekly results.
A separate reading of sales from Redbook Research, an independent company, found sales at major retailers rose by 4.1 percent on a year-over-year basis for the week ended May 22, down from the preceding week's 4.8 percent gain.
It attributed the slowdown in growth to inclement weather in the Midwest and the Memorial Day holiday falling later in the month this year.
Redbook said there was some good news for retailers, including customers paying full price for spring and summer apparel as well as for suits and dresses.
--------------------------------------------------------------------------------
Reuters contributed to this report
05-25-04, 05:01 PM
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How about all the product placement in shrek 2? I'm sure star bucks wasn't complaining, nor was Burger king, nor was toy stores with tons of shrek toys, nor the post office or the other products that have shrek 2 tie ins.
05-25-04, 07:05 PM
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It's not that unusual. There was a study back in '99 that showed a signifiant drop in worker productivity on may 25th. That's right - amongst it's many sins, Phantom Menace added to the economic woes of the country by drawing off thousands and thousands of workers in the middle of the week.
05-25-04, 07:15 PM
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But that was a work day. Shrek opened on a friday and had it's biggest numbers on saturday. Wednesday didn't have anyone level their work. They were going out to the malls, the shopping centers, the movie complexes and they are going out to eat dinner out, or shopping and then they watch. Shrek 2 helped folks get out there and possibly buy something. It's stupid to blame it.
05-25-04, 09:44 PM
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Because I'm sure all those people would've been shopping during those 90 minutes instead of wathcing the movie. And we all know if you watch a movie for 90 minutes, you're not allowed to shop for that entire 24 hour period.
Or perhaps this correlation is weak at best and people just bought less.
Or perhaps this correlation is weak at best and people just bought less.
05-26-04, 12:10 AM
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Originally posted by Neeb
Yeah... the stores suffered because 20,000,000 people in a country of 290,000,000 decided not to go shopping...
Right...
Yeah... the stores suffered because 20,000,000 people in a country of 290,000,000 decided not to go shopping...
Right...
05-26-04, 02:38 AM
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Give me a break. That's the most ridiculous I have ever heard - Shrek 2 hurting retail sales. Where was this when the first Spiderman, Lord of the Rings, etc... was released and did similar dollar figures. I guess, the stores is going to blame every blockbuster movies from here on. They got a month before Spiderman 2 comes out which should bring in close or better figures.
05-26-04, 04:54 PM
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Speaking of which, when's International Buy Nothing Day?
