RETAIL: DG ≠ Consumer Spending

Takeaway: DG's blowup is coming at the same time we're seeing the best ICSC reading in yrs. We think the latter is a better barometer for the consumer

This note was originally published June 04, 2013 at 13:59 in Retail

Don't let Dollar General's weak results today fool you. Consumption is not rolling over en masse. In fact, today's ICSC reading -- which is based on a sample of 80 store chains spanning different demographic groups -- reported the best trends we've seen in over two-years. The results on a 1-week, 3-week, and 12-week basis all turned up sequentially with this morning's reading, which supports Hedgeye's bullish stance on the US Consumer.

 

1-WEEK ICSC INDEX % CHG

RETAIL:  DG ≠ Consumer Spending - 1wk

 

3-WEEK ICSC INDEX % CHG

 RETAIL:  DG ≠ Consumer Spending - 3wk

 

12-WEEK ICSC INDEX % CHG

RETAIL:  DG ≠ Consumer Spending - 12wk


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