Consumer Behavior

Retail sales continue on recovery path, albiet a bit slower

Photo by istock.com

August 17, 2020

Retail sales are continuing to recover, though July was not at the same pace as June, which indicates a "positive step in the right direction," according to the National Retail Federation.

The sales rebound reflects a continued U.S. retail resilience and consumer willingness to spend despite the ongoing and resurgence of COVID-19 across the country, said NRF President and CEO Matthew Shay in a press release on the sales trend..

"Retailers all across the country have demonstrated that their stores and supply chains can be operated safely and effectively for associates and their customers by following established guidelines and protocols. We encourage Congress and elected leaders at all levels of government to enact policies that support consumers and keep the economy open," said Shay in the release.

Yet while consumers are spending, they remain anxious about their health and economic well-being, according to NRF Chief Economist Jack Kleinhenz.

"Retail sales are starting the third quarter on a solid footing considering the nosedive we saw this spring, but we have to remember that there's uncertainty about economic policy and that the resurgence of the virus is putting pressure on the fledgling recovery," Kleinhenz said in the release.

The U.S. Census Bureau reported overall retail sales in July were up 1.2% seasonally adjusted from June and up 2.7% year-over-year. Retail sales have been climbing after a record monthly drop while most stores were closed in April due to the coronavirus.

NRF's calculation, which excludes automobile dealers, gasoline stations and restaurants, showed July was up 1% seasonally adjusted from June and up 10% unadjusted year-over-year. NRF's results are different from the Census Bureau figures because of the categories excluded by NRF.

Here are additional NRF findings:
• Electronics and appliance stores were up 22.9% month-over-month seasonally adjusted, but down 2.3% unadjusted year-over-year.
• Clothing and clothing accessory stores were up 5.7% month-over-month seasonally adjusted, but down 19.6% unadjusted year-over-year.
• Health and personal care stores were up 3.6% month-over-month seasonally adjusted, and up 3.1% unadjusted year-over-year.
• Online and other non-store sales were up 0.7% month-over-month seasonally adjusted, and up 25.8% unadjusted year-over-year.
• Grocery and beverage stores were up 0.2% month-over-month seasonally adjusted, and up 12.8% unadjusted year-over-year.
• Furniture and home furnishings stores were unchanged percent wise month-over-month seasonally adjusted,but up 0.5% unadjusted year-over-year.
• General merchandise stores were down 0.2% month-over-month seasonally adjusted, but up 3.1% unadjusted year-over-year.
• Building materials and garden supply stores were down 2.9% month-over-month seasonally adjusted, but up 16% unadjusted year-over-year.
• Sporting goods stores were down 5% month-over-month seasonally adjusted, but up 18.9% unadjusted year-over-year.