Improvements in the U.S. economy bolstered retailers’ February sales, reflecting improved consumer sentiment as it relates to spending. According to the National Retail Federation, retail industry sales (which exclude automobiles, gas stations and restaurants) for February increased 0.6 percent seasonally, adjusted from January and 4.2 percent unadjusted year-over-year.
“Retailers have done a commendable job keeping their inventory levels where they need to be, while still offering attractive promotions for those who are eager to spend,” said NRF President and CEO Matthew Shay. “The big challenge retailers will face in the coming months, however, will be going head-to-head with high cotton, food and energy prices.”
February retail sales released today by the U.S. Commerce Department show total sales (which include non-general merchandise categories such as autos, gas stations and restaurants) increased 1.0 percent seasonally adjusted over January and 9.1 percent unadjusted year-over-year.
Solid growth in discretionary spending was seen across the board. Sales at building material, garden equipment and supplies dealers, a sector hit hard by the collapsed housing market, increased 0.6 percent seasonally adjusted from January and 9.6 percent unadjusted over last year.
Clothing and clothing accessory stores' sales increased 0.8 percent seasonally adjusted month-to-month and 4.4 percent unadjusted year-over-year. Sporting goods, hobby, book and music stores sales increased 1.3 percent seasonally adjusted month-to-month and 5.2 percent unadjusted year-over-year. Sales at health and personal care stores slowed from the previous month, decreasing 0.3 percent adjusted from January, but increased 5.2 percent unadjusted year-over-year.
The opposite was true for electronics and appliance stores whose sales increased 0.9 percent seasonally adjusted from the previous month but decreased 1.7 percent unadjusted over last year.
Department stores also showed strength with a gain of 1.0 percent over January, but a decline of 1.4 percent unadjusted year-over-year.
