Consumer Behavior

July retail sales illustrate consumers still shopping

Photo by istock.com

August 25, 2022

Despite inflation, consumers were busy shopping in July, according to the National Retail Federation.

Core retail sales rose last month while overall sales figures from the Census Bureau remained flat. Yet both statistical measures indicate strong year-over-year gains.

The NRF's calculation of retail sales, which excludes automobile dealers, gasoline stations and restaurants, showed July was up 0.8% from June and up 7.1% unadjusted year over year. In June, sales were up 0.6% month over month and up 6% year over year.

"Retail sales grew in July, supported by declines in prices at the gas pump and moderately lower inflation," NRF President and CEO Matthew Shay said in a press release regarding the sales activity.

"Consumers are adapting to higher prices by prioritizing essentials like food and back-to-school items, and retailers are working hard to absorb the impact of higher costs and help customers stretch their hard-earned dollars. However, policy measures like removing China tariffs, enacting smart immigration reform and investing in supply chain resiliency are needed to relieve inflationary pressure and lower costs for American families."

Additional highlights from NRF include:

• Online and other non-store sales were up 2.7% month over month seasonally adjusted and up 18.1% unadjusted year over year.
• Building materials and garden supply stores were up 1.5% month over month seasonally adjusted and up 6.2% unadjusted year over year.
• Grocery and beverage stores were up 0.2% month over month seasonally adjusted and up 7.7% unadjusted year over year.
• Sporting goods stores were up 0.1% month over month seasonally adjusted and up 3% unadjusted year over year.
• Health and personal care stores were up 0.4% month over month seasonally adjusted and up 1.5% unadjusted year over year.
• Clothing and clothing accessory stores were down 0.6% month over month seasonally adjusted but up 0.2% unadjusted year over year.
• General merchandise stores were down 0.7% month over month seasonally adjusted and down 0.1% unadjusted year over year.
• Furniture and home furnishings stores were up 0.2% month over month seasonally adjusted but down 0.3% unadjusted year over year.
• Electronics and appliance stores were up 0.4% month over month seasonally adjusted but down 11.3% unadjusted year over year.

The industry group, as Retail Customer Experience reported earlier this month, doesn't expect a true recession will take place this year.