News

Slow tax refund process dragging retail sales

March 13, 2017

Lower than usual foot traffic and less consumer spend in the retail sector is being blamed on the IRS.

Consumers aren't getting refunds quickly this year and that means they're not spending as much shopping, according to a CNBC report.

About $57 billion less refunds came through during February, CNBC stated, citing Morgan Stanley data.

"We have seen, in our businesses and as reported by a third-party service, a substantial reduction in mall traffic in February," L Brands' CFO Stuart Burgdoerfer told investors on an earnings call, according to CNBC. "Is it tax refunds? Who knows what it is. But it was a substantial falloff."