Grocery, beverage sales increase 4% in July

Retail store sales of grocery and beverage items increased 4% in July when compared to the same month last year, according to the National Retail Federation (NRF). Overall, retail store sales were up 0.9% for the month. NRF’s numbers are based on data from the U.S. Census Bureau.

“July’s strong results are consistent with a confident consumer,” NRF Chief Economist Jack Kleinhenz said. “Households are in good shape with spending, and that should continue as long as the labor market remains healthy. But it’s important to remember that today’s data is looking backward at what was happening a month ago. The impact of volatile financial markets and increased trade tensions in recent weeks may put a wind of caution in consumer spending as we move forward in 2019.”

The release of July’s numbers comes two days after the Trump administration delayed new tariffs on some consumer goods until Dec. 15 to avoid any impact on holiday spending, but many products will still be hit by tariffs taking effect Sept. 1.

Specifics from key retail sectors during July include:

• Online and other non-store sales were up 19.3% year-over-year and up 2.8% month-over-month, likely boosted by Amazon’s Prime Day promotion.
• Health and personal care stores were up 6.1% year-over-year but down 0.2% month-over-month.
• General merchandise stores were up 2.1% year-over-year and up 0.6% month-over-month.
• Furniture and home furnishings stores were up 2% year-over-year and up 0.3% month-over-month.
• Sporting goods stores were up 2% year-over-year but down 1.1% month-over-month.
• Building materials and garden supply stores were down 0.5% year-over-year but up 0.2% month-over-month.
• Clothing and clothing accessory stores were down 1.6% year-over-year but up 0.8% month-over-month.
• Electronics and appliance stores were down 2.3% year-over-year but up 0.9% month-over-month.