Siras: Tax Refunds Help CE Sales
By TWICE Staff On Feb 13 2012 - 5:01am
REDMOND, WASH. —
Siras has a study showing
how last year’s federal tax refunds helped CE sales,
showing a clear correlation between the government’s
sending of refund checks and consumers’ increased
spending on CE goods.
The study in this exclusive TWICE report is
based on weekly performance sales data from
participating Siras’ retailers and shows that at its
maximum effect, during the month of February, tax
refunds may have helped in more than doubling
“I think the biggest surprise in this analysis isn’t
the potential impact on sales, but its timing,” said Peter
Junger, Siras president. “Last year, about $100
billion, or about 70 percent of all refunds mailed between
Jan. 1 and June 30, were sent out between
mid-January and the end of February. In looking at
retail receipts for those weeks compared with typical,
non-holiday shopping periods, sales were more than
40 percent higher overall, with some weeks exceeding
a 100 percent increase.”
Junger added, “What this means is
that retailers probably shouldn’t wait
until April to promote purchases with
tax refunds. Starting a few weeks after
Christmas, as soon as the first refund
checks go out in January, looks like the
time to get started.”
According to Junger, methodology
for the Siras analysis involved correlating
sales data from retailers participating
in Siras programs with tax refund
data posted on the IRS website.
The average weekly retail sales baseline
was calculated by averaging the
weekly sales for weeks ending May 6
through Sept. 23, 2011.
The sales increase reflects the increase
over that weekly average.
Cumulative tax refund data for income year 2010 are
found on the IRS website for weeks beginning Feb. 15,
2011. The missing weeks (Jan. 21, Feb. 18, April 15,
May 27) were estimated by modeling the refunds as
evenly distributed during the missing weeks.
Siras, based here, provides product registration, return
validation and lifecycle-tracking services to major
retailers and more than 50 CE manufacturers.