Add the O.J. Simpson trial to the list of reasons why shoppers are staying home. In addition to higher interest rates, high levels of consumer debt and concerns about jobs and the economy, the trial of the century may be depressing sales in some stores, a prominent economist says.
"Too many people are watching the O.J. Simpson trial and not shopping," asserts Sung Won Sohn, an economist at the Minneapolis banking company Norwest Corp.Last week's reports from the nation's retailers on sales in February were unimpressive. An index compiled by Merrill Lynch & Co. showed flat sales for the month.
Sohn sees parallels between what's happening now and what took place four years ago when many Americans were locked into coverage of the gulf war.
Even though courtroom video may not be as dynamic as exploding bombs and missiles, Sohn believes the comparison is genuine. "At that time, the slowdown in retail sales was blamed on CNN (Cable News Network) and people watching TV," Sohn says. "I think something of that nature is happening right now."
Sohn concedes that more traditional factors are the major reasons behind the apparent slow-down in consumer spending.