October Retail Sales Grow

Retail sales were up again in October as consumers set aside concerns about inflation and many got a jump start on the holiday season, the National Retail Federation (NRF) said.

The U.S. Census Bureau reported overall retail sales in October were up 1.3% from September and up 8.3% year-over-year. In September, sales were flat month-over-month but up 8.6% year-over-year.

NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed October was up 0.7% from September and up 6.5% unadjusted year-over-year. In September, sales were up 0.5% month-over-month and up 7.9% year-over-year.

“October retail sales data confirms that consumers continue to stretch their dollars on household priorities, including gifts for family and loved ones this holiday season,” said Matthew Shay, NRF president and CEO. “With a strong labor market and excess savings, we are expecting a solid five-day holiday shopping weekend, and retailers are prepared to meet their customers with the right inventory, competitive prices and great experiences.”

Jack Kleinhenz, chief economist at the NRF, said October’s performance is a strong foothold heading into the holiday season. 

“Spending has gradually slowed but remains solid,” he said. “Consumers continue to show resiliency despite elevated inflation, rising borrowing costs and widespread macroeconomic uncertainties. With employment and wages growing and shoppers accessing accumulated savings, we expect the trend to continue.”

October sales were up in all but two retail categories on a yearly basis, led by online sales, building materials stores and grocery stores, and increased in five out of nine 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 11.8% unadjusted year-over-year.
• Building materials and garden supply stores were up 1.1% month-over-month seasonally adjusted and up 9.1% unadjusted year-over-year.
• Grocery and beverage stores were up 1.4% month-over-month seasonally adjusted and up 6.8% unadjusted year-over-year.
• Health and personal care stores were up 0.5% month-over-month seasonally adjusted and up 5.5% unadjusted year-over-year.
• Clothing and clothing accessory stores were flat month-over-month seasonally adjusted but up 2.5% unadjusted year-over-year.
• General merchandise stores were down 0.2% month-over-month seasonally adjusted but up 1.8% unadjusted year-over-year.
• Sporting goods stores were down 0.3% month-over-month seasonally adjusted but up 0.6% unadjusted year-over-year.
• Furniture and home furnishings stores were up 1.1% month-over-month seasonally adjusted but down 0.6% unadjusted year-over-year.
• Electronics and appliance stores were down 0.3% month-over-month seasonally adjusted and down 12.3% unadjusted year-over-year.