August retail great YOY, tepid MOM

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ShoppingAccording to the National Retail Federation, there was an increase in retail activity during the month of August 2013 compared to results for July, but it was barely noticeable. However, there was significant upward momentum compared to August a year ago.


The measure, which excludes, automobiles, gas and restaurant results, was up only 0.1% compared to July 2013, but it was up a fairly robust 3.9% compared to August 2012.

Still, NRF leadership is not impressed. “Slow growth continues to be the economic story five years after the financial crisis,” NRF President and CEO Matthew Shay said. “The economy, employment, wages, and retail sales continue to stagger along. Retailers and consumers are resilient but not overly optimistic about the broader economy. While positive retail sales growth continues month-after-month, it is just not strong enough to move the needle.”

Added NRF Chief Economist Jack Kleinhenz, “Retail sales gains continue to be tepid. Retail sales and employment, while measurably positive, have been disappointing over the last few months, and have been difficult to reconcile with consumer confidence. The data suggests that consumers remain cautious with their pocketbooks and purchases. This month’s weak retail sales report will continue to put pressure on policymakers, who are dealing with tapering, and retailers, who will need to focus on price and value to entice consumer spending.”
NRF released the following highlights:

• Building material and garden equipment and supplies dealers stores’ sales decreased 0.9 percent seasonally-adjusted yet increased 5.7 percent unadjusted year-over-year.
• Clothing and clothing accessories stores’ sales decreased 0.8 percent seasonally-adjusted month-to-month yet increased 4.6 percent unadjusted year-over-year.
• Electronics and appliance stores’ sales increased 0.8 percent seasonally-adjusted month-to-month and increased 3.1 percent unadjusted year-over-year.
• Furniture and home furnishing stores’ sales increased 0.9 percent seasonally-adjusted month-to-month and increased 4.9 percent unadjusted year-over-year.
• General merchandise stores’ sales decreased 0.2 percent seasonally-adjusted month-to-month yet increased 0.4 percent unadjusted year-over-year.
• Health and personal care stores’ sales increased 0.6 percent seasonally-adjusted month-to-month and increased 3.0 percent unadjusted year-over-year.
• Nonstore retailers’ sales increased 0.5 percent seasonally-adjusted month-to-month and increased 8.8 percent unadjusted year-over-year.
• Sporting goods, hobby, book and music stores’ sales decreased 0.5 percent seasonally-adjusted month-to-month yet increased 3.7 percent unadjusted year-over-year.