From Cynthia Scott of OMC Financial Services:
Can retail sales stay strong with higher gas prices?
**Retail sales were reported last week for February and indicated that the consumer is spending; sales increased by 6.3% from the same period last year
**Many of the chain stores that saw sales rise were discount stores such as TJ Max and Costco whose consumer is a bargain shopper
**Consumers spend an average of 12% of their income on discretionary purchases
**Consumer delinquency on personal debt is improving; it was lower in 2011 than in 2010
**Consumer confidence is higher because of the improving job market, the strong stock market and better household balance sheets
**Easter spending will be a barometer for how higher gas prices are affecting consumer spending
**Gas prices have risen 50% since the end of last year and retail stocks will have an uphill battle if gas prices continue to rise
