NRF: Resilient Consumers Boost April Retail Sales

The National Retail Federation (NRF) said retail sales in April were up on a month-over-month and year-over-year basis as consumers remain resilient in the face of high prices.

NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed April was up 0.6% from March and up 2% unadjusted year-over-year. In March, sales were down 0.7% month-over-month but up 3.4% year-over-year. NRF’s numbers were up 3.7% unadjusted year-over-year on a three-month moving average as of April.

The U.S. Census Bureau said overall retail sales in April were up 0.4% from March and up 1.6% year-over-year. In March, sales were down 0.7% month-over-month but up 2.4% year-over-year.

“Moderating price levels, continued labor market strength and wage gains have increased consumers’ ability to spend,” said Matthew Shay, president and CEO of NRF. “However, they remain cautious and concerned about the current economic environment. Retailers continue to provide competitive pricing and convenience to help cost-sensitive consumers stretch their budgets.”

Jack Kleinhenz, chief economist with the NRF, added that while shoppers are being selective and price-sensitive, he expects that spending will see modest gains in the months ahead.
“Consumers remained engaged in April,” he said. “Year-over-year growth slowed, which was partly because of upward revisions to last year’s data but also an early indication that credit conditions are tightening and excess savings are shrinking.” 

April sales were up in four out of nine retail categories on a yearly basis, led by online sales, health and personal care stores and general merchandise stores, and also rose in four categories on a monthly basis. Specifics from key sectors include:

• Online and other non-store sales were up 1.2% month-over-month seasonally adjusted and up 6.4% unadjusted year-over-year.
• Health and personal care stores were up 0.9% month-over-month seasonally adjusted and up 5.8% unadjusted year-over-year.
• General merchandise stores were up 0.9% month-over-month seasonally adjusted and up 4.1% unadjusted year-over-year.
• Grocery and beverage stores were down 0.2% month-over-month seasonally adjusted but up 2.9% unadjusted year-over-year.
• Clothing and clothing accessory stores were down 0.3% month-over-month seasonally adjusted and down 4.1% unadjusted year-over-year.
• Building materials and garden supply stores were up 0.5% month-over-month seasonally adjusted but down 5.7% unadjusted year-over-year.
• Electronics and appliance stores were down 0.5% month-over-month seasonally adjusted and down 8.2% unadjusted year-over-year.
• Furniture and home furnishings stores were down 0.7% month-over-month seasonally adjusted and down 8.8% unadjusted year-over-year.
• Sporting goods stores were down 3.3% month-over-month seasonally adjusted and down 9.1% unadjusted year-over-year.