NRF: July Retail Sales Rebound

Retail sales rebounded in July as Amazon’s Prime Day and significant promotions from other retailers served to drive shoppers’ willingness to open their wallets, officials with the National Retail Federation said.

Figures from the U.S. Census Bureau show overall retail sales in July were up 0.7% from June and up 3.2% year-over-year. That was double the increases seen in June, when sales were up 0.3% month-over-month and up 1.6% year-over-year.
NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed July was up 1% seasonally adjusted from June and up 3.8% unadjusted year-over-year. In June, sales were up 0.3% month-over-month and up 3.2% year-over-year.
NRF’s numbers were up 3.9% unadjusted year-over-year on a three-month moving average as of July and up 4% for the first seven months of the year. Sales in the year’s seventh month were up in five out of nine retail categories on a yearly basis, led by online sales, health and personal care stores and general merchandise stores, and up in all but two categories on a monthly basis.

“July retail sales show consumers continue to drive the economy through this period of economic pressure with robust spending supported by steady job growth and wage gains,” said Matthew Shay, president & CEO of the NRF. “Retailers remain focused on providing essential items at competitive prices for families and students as we approach the end of an expected record back-to-class shopping season.”

“Retail sales growth has been slowing, but July got a midsummer boost from special deal days offered by multiple retailers,” said Jack Kleinhenz, NRF’s chief economist. “Households had a positive response, and the pace of sales was clearly helped, more than doubling the previous monthly gain. The data shows the ongoing resilience in consumer spending and how it is fueling the overall economy. It’s worth noting that the strong year-over-year gain came partly because sales accelerated this July but were decelerating at the same time last year.”

Specifics from key retail sectors include: 

• Online and other non-store sales were up 1.9% month-over-month seasonally adjusted and up 11.8% unadjusted year-over-year.
• Health and personal care stores were up 0.7% month-over-month seasonally adjusted and up 8.3% unadjusted year-over-year.
• General merchandise stores were up 0.8% month-over-month seasonally adjusted and up 1.6% unadjusted year-over-year.
• Grocery and beverage stores were up 0.8% month-over-month seasonally adjusted and up 1.5% unadjusted year-over-year.
• Clothing and clothing accessory stores were up 1% month-over-month seasonally adjusted and up 0.9% unadjusted year-over-year.
• Sporting goods stores were up 1.5% month-over-month seasonally adjusted but down 0.5% unadjusted year-over-year.
• Building materials and garden supply stores were up 0.7% month-over-month seasonally adjusted but down 3.5% unadjusted year-over-year.
• Electronics and appliance stores were down 1.3% month-over-month seasonally adjusted and down 3.5% unadjusted year-over-year.
• Furniture and home furnishings stores were down 1.8% month-over-month seasonally adjusted and down 7.6% unadjusted year-over-year.